The Maurer Company has a long-term debt ratio of .30 and a current ratio of 1.50. Current liabilities are $990, sales are $5,120, profit margin is 9.60 percent, and ROE is 18.20 percent. What is the amount of the firm's net fixed assets?
| Current ratio = 1.50 |
| Current liabilities = 990 |
| Current ratio = Current assets / Current liabilities |
| Current assets = Current ratio * Current liabilities |
| Current assets = 1.50 * 990 |
| Current assets = 1485 |
| Net profit = Sales * profit margin |
| Net profit = 5120 * 9.60% |
| Net profit = 491.52 |
| ROE = Net Income / Shareholder equity |
| Shareholder equity = Net Income / ROE |
| Shareholder equity = 491.52 / 18.20% |
| Shareholder equity = 2700.66 |
| Debt ratio = 0.30 |
| Equity ratio = 1 - Debt ratio |
| Equity ratio = 1 - 0.30 |
| Equity ratio = 0.70 |
| Total asset = 2700.66 / 0.70 |
| Total asset = 3858.09 |
| Net fixed assets = Total assets - Current assets |
| Net fixed assets = 3858.09 - 1485 |
| Net fixed assets = 2373.09 |
| Answer : 2373.09 |
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