Net Sales Are $1,500,000, Beginning Total Assets Are $700,000, and the Asset

question 10

Multiple Choice

Net sales are $1,500,000, beginning total assets are $700,000, and the asset turnover is 3.0. What is the ending total asset balance?

• A) $500,000
• B) $300,000
• C) $700,000
• D) $400,000

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Definitions:

Operating Activities

Transactions and events related to the primary business activities, such as selling products or services, which are reflected in the cash flows.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Common Stock

A type of equity ownership in a corporation, representing claims on a portion of its earnings and assets, with voting rights on corporate matters.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including inventory, reported in the cash flow statement.