Answer:
The amount of the firm's net fixed assets is $4,321
Explanation:
Profit margin = Net income/ Sales
Net income = Profit margin x Sales = 9.30% x $5,120 = $476.16
ROE = Net Income/Equity
Equity = Net Income/ROE = $476.16/16.90% = $2,818
Long-term debt ratio = Long-term debt/Equity
Long-term debt = Long-term debt ratio x Equity = 0.6 x $2,818 = $1,691
Basing on accounting equation:
Total asset =Current Liabilities + Long-term debt + Equity = $940 + $1,691 + $2,818 = $5,449
Current ratio = Current asset/Current Liabilities
Current asset = Current ratio x Current Liabilities = 1.2 x $940 = $1,128
Fixed assets = Total asset - Current asset = $5,449 - $1,128 = $4,321
