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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:

32

Explanation:

First bounce = 13 / 14 × 10 = 130 /14

using geometric progression where the common ratio = 13/14, the first bound = 130/14

ar^n-1 < 1

substitute the values into the equation

130 /14 × 13/14^(n-1) < 1

(13/14)^n-1 < 1÷ (130/14)

(13/14)^n-1 < 14 / 130

take log of both side

log (13 /14)^n-1 < log ( 14/130)

n-1 log (13 /14) < log  ( 14/130)

since log (13/14) negative

n-1 > (log( 14/130)) ÷ ( log (13/14)

n - 1 > 30.07

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The 32 bounce will the first less than 1 foot

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kirza4 [7]

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Tamiku [17]

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