Question

The Maurer Company has a long-term debt ratio of .36 and a current ratio of 1.70....

The Maurer Company has a long-term debt ratio of .36 and a current ratio of 1.70. Current liabilities are $920, sales are $6,340, profit margin is 9.5 percent, and ROE is 19.7 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

current ratio =Current assets/Current liabilities

Current assets=(1.7*920)=$1564

Profit margin=net income/sales

net income=(0.095*6340)=$602.3

ROE=net income/equity

equity=(602.3/0.197)=$3057.360406

Long term debt ratio=Long term debt/(Long term debt+Total equity)

0.36*(Long term debt+3057.360406)=Long term debt

0.36Long term debt+1100.649746=Long term debt

Long term debt=1100.649746/(1-0.36)

=$1719.765228

Total assets=Total equity+Total liabilities

(Current assets+Net fixed assets)=(Current liabilities+Long term liabilities)+Total equity

(1564+Net fixed assets)=(920+$1719.765228)+$3057.360406

Net fixed assets=(920+$1719.765228)+$3057.360406-1564

which is equal to

=$4133.13(Approx).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term...
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .53 and a current ratio of 1.42. Current liabilities are $2,470, sales are $10,690, profit margin is 10 percent, and ROE is 15 percent.    What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)    Net fixed assets            $
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term...
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .55 and a current ratio of 1.44. Current liabilities are $2,480, sales are $10,720, profit margin is 12 percent, and ROE is 17 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The Maurer Company has a long-term debt ratio of .30 and a current ratio of 1.50....
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?
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term...
The Smathers Company has a long-term debt ratio (i.e., the ratio of long-term debt to long-term debt plus equity) of .43 and a current ratio of 1.27. Current liabilities are $2,395, sales are $10,465, profit margin is 11 percent, and ROE is 16 percent. What is the amount of the firm’s current assets? (Do not round intermediate calculations and your answer to 2 decimal places, e.g., 32.16.) What is the amount of the firm’s net income? (Do not round intermediate...
Ratios and Fixed Assets [L{)2] The Maurer company has a long-term debt ratio of .35 and...
Ratios and Fixed Assets [L{)2] The Maurer company has a long-term debt ratio of .35 and a current ratio of 1.30. Current liabilities are $955, sales 'are $7,210, profit margin is 8.3 percent, and RoE is 17.5 percent. what is the amount of the firm's net fixed assets?
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?
The Acme Widget Company has a ratio of long-term debt-to-total assets of .40, D/E of .95...
The Acme Widget Company has a ratio of long-term debt-to-total assets of .40, D/E of .95 and a current ratio of 1.30. Current liabilities are $900, sales are $5,320, net profit margin is 9.4%, and ROE is 18.2%. What is the amount of the firm’s net fixed assets?
The Lecma Widget Company has a ratio of long-term debt-to-total assets of .40, D/E of .95...
The Lecma Widget Company has a ratio of long-term debt-to-total assets of .40, D/E of .95 and a current ratio of 1.30. Current liabilities are $900, sales are $5,320, net profit margin is 9.4%, and ROE is 18.2%. What is the amount of the firm’s net fixed assets?
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation:...
Profit Margin and Debt Ratio Assume you are given the following relationships for the Haslam Corporation: Sales/total assets 1.3 Return on assets (ROA) 4% Return on equity (ROE) 5% Calculate Haslam's profit margin and liabilities-to-assets ratio. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin:   % Liabilities-to-assets ratio:   % Suppose half of its liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.   %
SME Company has a debt-equity ratio of .70. Return on assets is 8.5 percent, and total...
SME Company has a debt-equity ratio of .70. Return on assets is 8.5 percent, and total equity is $540,000.    a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT