The firm has a ratio of long-term debt to total assets of 0.70 and a c

QUESTION

The firm has a ratio of long-term debt to total assets of 0.70 and a current ratio of 1.20. Current liabilites are $850, sales are $4310, profit margin is 9.5 percent and ROE is 21.5 percent. How do I find the net fixed assets?
Current Ratio = Current Assets/ Current Liabilities 1.20 = Current Assets / $850 Current Assets = $850 * 1.20 =$1,020 Current Assets = $1,020 Profit Margin = Net Income /Sales Net Income = Profit Margin * Sales Net Income = 9.5% * $4,310 Net Income = $409.45 Return on Equity = Net Income / TotalEquity Total Equity = Net Income / ROE Total Equity = $409.45 / 0.215 Total Equity = $1,904.42 Long-term Debt Ratio =Long-term Debt / (Long-term Debt Total Equity) 1/Long-term debt = 1 (Total Equity / Long-termdebt) 1/0.70 = 1 (Total Equity / Long-term Debt) Total Equity /

Longterm debt = 0.4285 $1,904.42 / Long-term debt = 0.4285 Long-term Debt = $4,444.38 Total Debt = Current Liabilities Long-term debt Total Debt = $850 $4,444.38 Total Debt = $5,294.38 Total Assets = Total Debt TotalEquity Total Assets = $5,294.38 $1,904.42 Total Assets = $7,198.80 Net-Fixed Assets = Total Assets CurrentAssets = $7,198.80 $1,020 Net-Fixed Assets =$6,178.80

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