Final answer:
To find Long Term Assets, calculate Current Assets using the Current and Quick Ratios, and then subtract Current Assets from Total Assets. The Long Term Assets value can then be derived, though the Debt to Equity ratio is not directly required for this calculation.
Step-by-step explanation:
The student is interested in calculating Long Term Assets from given financial ratios and values such as Inventories, Total assets, Current Ratio, Quick Ratio, and Debt to Equity ratio. To solve this, we need to first determine the Current Assets and then subtract this from the Total Assets in order to find Long Term Assets.
Using the Current Ratio, which is defined as Current Assets divided by Current Liabilities, we can express it algebraically as Current Assets = Current Ratio × Current Liabilities. Also, by knowing that the Current Assets include Inventories and using the Quick Ratio given as (Current Assets - Inventories) / Current Liabilities, we can derive the Current Liabilities, and thus the Current Assets.
Once we have the Current Assets value, subtracting it from Total Assets, valued at $2,800,000, gives us Long Term Assets.
The Debt to Equity ratio is not directly needed for calculating Long Term Assets, but it informs about the company's financial structure and risk profile, which could be useful in broader financial analysis.