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How much must the assets be reduced to bring the tato

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Question 1: Bonner Corp.'s sales last year were $385,000, and its year-end total assets were $355,000. The average firm in the industry has a total assets turnover ratio (TATO) of 2.4. Bonner's new CFO believes the firm has excess assets that can be sold so as to bring the TATO down to the industry average without affecting sales. By how much must the assets be reduced to bring the TATO to the industry average, holding sales constant? Use the year-end balance in your calculations.

Select the correct answer.

Option a. $194,497

Option b. $194,583

Option c. $194,670

Option d. $194,323

Option e. $194,410

Reference no: EM132484977

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