Roggers Corp.'s beginning and ending total assets in the year 2017 were $18,000,000 and $22,000,000, respectively. Its asset turnover ratio for the year was calculated to be 1.75 times. Calculate the amount of net sales for the year 2017
A) $27,000,000
B) $42,000,000
C) $35,000,000
D) $48,000,000
C .Asset turnover ratio = Net sales / Average total assets
Net sales = Asset turnover ratio x Average total assets
Average total assets = ($18,000,000 + $22,000,000 ) / 2 = 20,000,000
Net sales = 1.75 x 20,000,000 = 35,000,000
You might also like to view...
Emerson Studios has designed its marketing organization along the lines of a ________ organization in which operational specialists head different marketing activities
A) geographic B) product C) functional D) customer E) market
Identify each of the following transactions as an operating activity (O), an investing activity (I), a financing activity (F), or a transaction that is not reported on the statement of cash flows (N)
a) ________ Receipt of interest b) ________ Increase of accounts payable c) ________ Borrowed money from a bank d) ________ Purchase of building for cash e) ________ Declaration of cash dividends f) ________ Sold plant equipment for cash g) ________ Increase of accounts receivable h) ________ Payment on principal of a note What will be an ideal response?