Question

# The maurer has lon term debt ratio of .35 and a current ratio of 1.30. Current...

The maurer has lon term debt ratio of .35 and a current ratio of 1.30. Current liabilites are \$955, sales are 7210. profit margin is 8.3% and ROE is 17.5%. What is the amount of the firms net fixed assets?

current ratio=current assets/current liabilities

Hence current assets=(1.3*955)=\$1241.5

Profit margin=net income/sales

Hence net income=(7210*8.3%)=\$598.43

ROE=net income/equity

Hence equity=(598.43/0.175)=\$3419.60

long term debt ratio= long term debt/( long term debt+equity)

0.35= long term debt/( long term debt+3419.6)

0.35( long term debt+3419.6)= long term debt

0.35 long term debt+1196.86= long term debt

long term debt=1196.86/(1-0.35)

=\$1841.323077

Total assets=current assets+Fixed assets

Total assets=total liabilities+Total equity

current assets+Fixed assets=(current liabilities+long term debt)+equity

1241.5+fixed assets=955+\$1841.323077+3419.60

fixed assets=(955+\$1841.323077+3419.60)-1241.5

=\$4974.42(Approx).

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• A 1,710 kg pile driver is used to drive a steel beam into the ground. The...
• Determine how much is in each account on the basis of the indicated compounding after the...
• (4) A clinical psychologist investigated whether daily meditation caused an improvement in academic achievement. Some college...
• Shaking Hands in a Group Chris and his son were among four father-and-son pairs who gathered to...
• To excite an SPP on the internal metal interface, an additional dielectric layer whose refractive index...
• In Education, How could the use of appropriate (or inappropriate) data analysis techniques affect the evaluator's...