Question

During​ 2018, Landers Company had net sales of $ 17 comma 500 comma 000. The beginning total assets were $ 9 comma 900 comma 000. The asset turnover ratio was 2 times. Calculate the ending total assets of Landers.​ (Round any intermediate calculations to two decimal​ places, and your final answer to the nearest​ dollar.)

Answer 1

ending total assets of Lander is $7600000

Step-by-step explanation:

given data

sales = $17,500,000

asset turnover ratio = 2 times

beginning total assets = $9,900,000

solution

we consider here ending total assets of Lander is = x

so now we get here ending total assets of Lander that is get by Assets Turnover ratio formula that express as

Assets Turnover ratio = Turnover ÷ Average assets ........................1

here Average assets is = ( $9,900,000 + x ) ÷ 2

so put here value in equation 1

2 =
`(17,500,000)/((9900000+x)/(2) )`

x = $7600000