Net sales are $2,700,000, beginning total assets are $750,000, and the asset turnover is 3.0.What is the ending total assets?
A)$600,000
B)$900,000
C)$1,050,000
D)$1,125,000

Question

Quizplus · Accepted Answer

Asset Turnover = Net Sales / Average Total Assets
3.0 = 2,700,000 / [(750,000 + ending total assets)/2]
Solving for ending total assets:
ending total assets = 1,050,000. Therefore, the answer is C.

Net Sales Are $2,700,000, Beginning Total Assets Are $750,000, and the Asset