During 2018, Landers Company had net sales of $17,700,000. The beginning total assets were $10,000,000. 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) $13,600,000
B) $10,000,000
C) $15,900,000
D) $5,900,000
A) $13,600,000
Explanation: Asset turnover ratio = Net sales / Average total assets
Average total assets = Net sales / Asset turnover ratio
Average total assets = $17,700,000 / 1.5 = 11,800,000
Average total assets = (Beginning assets + Ending assets) / 2
Ending assets = (Average total assets × 2) - Beginning assets
Ending assets = ($11,800,000 × 2) - $10,000,000 = $13,600,000
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