Answer:
The amount of the firm's net fixed assets $7,361.
Explanation:
Long term debt ratio = 0.60
Current Ratio = Current Assets / Current Liabilities
1.70 = Current Assets / 920
$920 x 1.70 = Current Asset
Current Assets = $1,564
Profit margin = Net profit / sales
9.50% = Net profit / 5,160
Net profit = 0.0950 x 5,160
Net profit = $490.2
Return on equity = Net profit / Shareholder's Equity
18.50% = 490.2 / shareholder's equity
Shareholder's Equity = 490.2 / 0.018.5
Shareholder's Equity = $2,650
Suppose
Total Assets = A
Using Accounting Equation
Asset = Liabilities + Equity
A = ( 0.6A + $920 ) + $2,650
A = 0.6A +920 + 2650
A = 0.6A + 3570
A - 0.6A = 3570
0.4A = 3570
A = 3570 / 0.4
A = 8,925
Total Assets = $8,925
Fixed Assets = 8925 - 1564
Fixed Assets = $7,361
