During 2018,Landers Company had net sales of $17,700,000.The beginning total assets were $10,000,000.The asset turnover ratio was 1.5 times.Calculate the ending total assets of Landers.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

Question

Quizplus · Accepted Answer

Asset turnover ratio = Net sales / Average total assets
Average total assets = Net sales / Asset turnover ratio
Average total assets = $17,700,000 / 1.5 = 11,800,000
Average total assets = (Beginning assets + Ending assets) / 2
Ending assets = (Average total assets × 2) - Beginning assets
Ending assets = ($11,800,000 × 2) - $10,000,000 = $13,600,000

During 2018,Landers Company Had Net Sales of $17,700,000