During 2018, Landers Corp

question 100

Multiple Choice

During 2018, Landers Corp. had net sales of $17,000,000. The beginning total assets were $8,300,000. The asset turnover ratio was 1.6 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) $12,950,000
• B) $8,300,000
• C) $14,675,000
• D) $6,375,000

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders in the company.

Total Asset Turnover

A financial ratio that measures a company's efficiency in using its assets to generate revenue.

Total Assets

Total assets represent the sum of everything of value owned by a company, including tangible and intangible resources, which are reported on a company's balance sheet.

Vertical Analysis

The presentation of a company’s financial statements in common-size form.