Answer :
Answer:
$13286.84
Explanation:
Given that
Current ratio = 1.41
Current liabilities =2465
Firstly, we calculate for current assets.
Recall that,
Current ratio = current assets / current liabilities
That is,
1.41 = current assets / $2,465
Therefore,
Current assets = $2,465 × 1.41
Current assets = $3475.65
Following that
We find Net Income
Again, recall that
Profit margin = net income / Sales
Where
Profit margin = 0.09 or 9%
Sales = 10,675
0.09 = net income / $10,675
Net income = 0.09 × $10,675
Net income = 960.75
Next step is to find for return on equity
Recall that
ROE = net income / total equity
Where,
ROE was given as 0.14
We got net income as 960.75
Hence,
0.14 = 960.75 / total equity
Total equity = 960.75 / 0.14
Total equity = $6,862.5
Long term debt ratio = long term debt / (long term debt + total equity)
1 / 0.52 = 1 + long term debt / (total equity / long term debt)
0.923 = (total equity / long term debt)
$6,862.5 / long term debt = 0.923
long term debt = 7,434.99
Recall that
Total debt = Current liabilities + long term debt
Thus,
Total debt = $2,465 + $7,434.99
Total debt = 9,899.99
Total asset is given as: total debt + total equity,
Thus,
Total assets = $9,899.99 + $6,862.5
Total assets = 16,762.494
Finally,
Recall that,
Net fixed assets = total assets - current assets
Therefore,
Net fixed assets = 16,762.494 - $3475.65
Net fixed assets = $13286.84