contestada

The balance sheets of Davidson Corporation reported net fixed assets of $340,000 at the end of 2016. The fixed-asset turnover ratio for 2016 was 3.0, and sales for the year totaled $1,440,000. Net fixed assets at the end of 2015 were:_________
a) $760,000.
b) $480,000.
c) $620,000.
d) None of these answer choices are correct.

Respuesta :

abiolataiwo2015

Answer:

$620,000

Explanation:

Calculation to determine what Net fixed assets at the end of 2015 were:

$1,440,000 / Average fixed assets

$1,440,000 / $480,000=3.0

Net fixed assets =[(340,000 + x) / 2] = $480,000

Solve for x

Net fixed assets= $620,000

Therefore Net fixed assets at the end of 2015 were:$620,000

Otras preguntas