During 2017,Sanchez Corp.had net sales of $17,100,000.The beginning total assets were $8,500,000.The asset turnover ratio was 2 times.Calculate the ending total assets of Sanchez.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

A)Asset turnover ratio = Net sales / Average total assets
Average total assets = Net sales / Asset turnover ratio
Average total assets = $17,100,000 / 2 = 8,550,000
Average total assets = (Beginning assets + Ending assets)/ 2
Ending assets = (Average total assets × 2)- Beginning assets
Ending assets = ($8,550,000 × 2)- $8,500,000 = $8,600,000