Respuesta :
Answer:
$2,500,000
Explanation:
Data provided
Ending assets = $1,500,000
Inventory turnover = 6.0 times
Net sales = $8,000,000
The computation of beginning total asset balance is shown below:-
Average total assets = $8,000,000 ÷ 4
= $2,000,000
Total assets = $2,000,000 × 2
= $4,000,000
Beginning assets = Total assets - Ending assets
= $4,000,000 - 1,500,000
= $2,500,000
Therefore we applied the above formula
Answer:
$2,500,000 = Beginning total assets
Explanation:
Given that,
Ending total assets = $1,500,000
Inventory turnover = 6.0 times
Net sales = $8,000,000
Asset turnover = 4.0 times
Gross sales = $9,000,000
Asset turnover ratio = (Net sales ÷ Average total assets)
4 = ($8,000,000 ÷ Average total assets)
Average total assets = ($8,000,000 ÷ 4)
= $2,000,000
Average total assets = (Beginning total assets + Ending total assets) ÷ 2
$2,000,000 = (Beginning total assets + $1,500,000) ÷ 2
$4,000,000 = Beginning total assets + $1,500,000
$4,000,000 - $1,500,000 = Beginning total assets
$2,500,000 = Beginning total assets
