Asked by Ashley Scott on Jun 26, 2024

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Carducci Corporation reported net sales of $3.6 million and beginning total assets of $0.9 million and ending total assets of 1.3 million.The average total asset amount is:

A) $2.3 million.
B) $2.7 million.
C) $0.25 million.
D) $0.36 million.
E) $1.1 million.

Average Total Asset

A measure used to calculate the average value of a company's assets over a specific period, often used in profitability and efficiency ratios.

Beginning Total Assets

The total value of all assets owned by an entity at the start of a fiscal period, critical for financial analysis and performance tracking.

Ending Total Assets

The total value of a company's assets (such as cash, inventory, property, and investments) at the end of an accounting period.

  • Determine the average amount of inventory, the turnover ratio for accounts receivable, and the overall asset turnover based on the specified data.
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MA
MOHAMMAD ALFARHANJul 02, 2024
Final Answer :
E
Explanation :
The average total asset amount is calculated by adding the beginning total assets ($0.9 million) to the ending total assets ($1.3 million) and then dividing by 2. This gives ($0.9 million + $1.3 million) / 2 = $2.2 million / 2 = $1.1 million.