Dennis Compton, Inc. has total assets of $5,335,901 and a capital intensity of 53.9%. What is the firm's sales? (Round to nearest whole dollar.)

Question

Quizplus · Accepted Answer

We can use the formula for capital intensity:
capital intensity = total assets / sales

Rearranging the formula, we get:
sales = total assets / capital intensity

Substituting given values, we get:
sales = $5,335,901 / 0.539 = $9,899,630.71

Rounding to the nearest whole dollar, we get:
sales ≈ $9,899,631

Therefore, the answer is choice letter C ($9,899,631).