Answer:
net sales will be 37,800,000 dollars
Explanation:
Assets turnover: This represent how many dollars of sales were generated per dollar of assets. The formula for this ratio is the following:
[tex]\frac{sales}{average \: assets} = $Assets TO[/tex]
where:
average assets:
( beginning + ending assets ) / 2 = (19,900,000 + 22,1000,000)/2 = 21,000,000
and assets TO 1.8
Now we plug these values on the formula, and solve for sales:
[tex]\frac{sales}{21,000,000} = 1.8[/tex]
sales = 1.8 x 21,000,000 = 37,800,000
