During 2018, Landers Corp. had net sales of $17,000,000. The beginning total assets were $8,600,000. The asset turnover ratio was 1.5 times. Calculate the ending total assets of Landers. (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.)

A) 14,266,667

B) 5,666,667

C) 14,066,666

D) 8,600,000

The ending total assets of Landers: C) 14,066,666

Explanation:

Asset turnover ratio is calculated by using following formula:

Asset Turnover ratio = Total Net Sales or Revenue / Average Total Assets

Average Total Assets = Total Net Sales or Revenue/Asset Turnover ratio

In where:

Average Total Assets = (Beginning Total Assets + Ending Total Assets) / 2

During 2018, Landers Corp. had net sales of $17,000,000 and the asset turnover ratio was 1.5 times.

Average Total Assets = $17,000,000/1.5 = $11,333,333.33

Ending Total Assets = Average Total Assets x 2 - Beginning Total Assets = $11,333,333.33 x 2 - $8,600,000 = $14,066,666