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Anastaziya [24]
3 years ago
9

The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,1

75, profit margin is 9.80 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets? Hint: This is another complex problem that requires a number of steps. Remember that CA + NFA = TA. So, if you find CA and TA, then you can solve for NFA.
Business
1 answer:
Hunter-Best [27]3 years ago
8 0

Answer:

$5,181.06

Explanation:

For computation of firm's net fixed assets first we need to follow some steps which is shown below:-

Current Ratio = Current Assets ÷ Current Liabilities

Current asset = Current ratio × Current liability

= 1.60 × $970

= $1,552

Profit Margin = Net income ÷ sales

Net income = Profit margin × sales

= 0.098 × $5,175

= 507.15

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

0.50 = Long term debt ÷ (Long term debt + 2881.53)

Long term debt = 1440.765 ÷ (1 - 0.5)

= 2881.53

Total debt = Current liability + Long term debt

= 970 + 2881.53

= 3851.53

Total Asset = Total debt + Total equity

= 3851.53 + 2881.53

= $6733.06

Net fixed Asset = Total Asset - Current Asset

= $6,733.06 - $1,552

= $5,181.06

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Answer:

a) Property

Explanation:

A property right is the exclusive or sole authority which determines the legal ownership of tangible and intangible resources and how these resources are to be used, whether by individuals or government.

Basically, properties can either be owned by the government, an individual or business entity. Some examples of a property include cars, land, houses, machines, books, inventions, mobile phones, ideas, birds, etc.

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kicyunya [14]

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Explanation:

Giving the following information:

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