Question

Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented...

Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions):

    2021      2020
Accounts receivable (net)   $   20         $   31     
Net sales   $   130         $   115     
Cost of goods sold   $   75         $   70     
Net income   $   20         $   32     
Inventory turnover      5.95                 
Return on assets      12.0   %              
Equity multiplier      2.51                 

Dowling's average total assets for 2021 is: (Round your answer to whole number.)

Multiple Choice

47.


240.


130.


167.

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Answer #1
Answer
The correct option is D : $ 167
Explanation
Calculation of Average Total Assets for 2021
Return on asset   = Net Income/ Average Total Assets
Average Total Assets Net Income / Return on Assets
Total Assets   = 20/.12
Average Total Assets 167

therefore ,

Option D is correct : $167

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