Answer:
$7,210.1065
Explanation:
The computation of net fixed assets is shown below:-
But before that we need to do the following calculations
Current Ratio = Current Assets ÷ Current Liabilities
Current Assets = 1.40 × $970
= $1,358
Profit Margin = Net Income ÷ Sales
= 9.30% = Net income ÷ $5,190
Net income = $5,190 × 9.30%
= $482.67
ROE = Net Income ÷ Shareholders Equity
16.90% = $482.67 ÷ Shareholders Equity
Shareholders Equity = $482.67 ÷ 16.90%
= $2,856.0355
Long-term debt ratio = Long term debt ÷ (Long term debt + Equity)
0.50 = Long term debt ÷ (Long term debt + $2,856.0355)
Long term debt = 0.50 × Long term debt + $2,856.0355
0.5 × Long term debt = $2,856.0355
Long term debt = $2,856.0355 ÷ 0.50
= $5,712.071
Total Assets = long term debt + Equity
= $5,712.071 + $2,856.0355
= $8,568.1065
Now
Total Assets = Current Assets + Fixed Assets
$8,568.1065 = $1,358 + fixed assets
So, the fixed asset is
= $8,568.1065 - $1,358
= $7,210.1065
