Answer:
$4,987.69
Step-by-step explanation:
Calculation to determine How much does the firm have in net fixed assets
First step is to calculate the Current assets
Current assets = 1.6 × $700
Current assets= $1,120
Second step is to calculate the Net income
Net income = .095 × $4,440
Net income= $421.80
Third step is to calculate the Total equity
Total equity = $421.80/.195
Total equity= $2,163.0769
Fourth step is to calculate Long-term debt
0.6 = Long term debt/(Long-term debt + $2,163.0769)
Long-term debt = $3,244.6153
Fifth step is to calculate the Total debt
Total debt = $700 + $3,244.6153
Total debt= $3,944.6153
Sixth step is to calculate Total assets
Total assets = $3,944.6153 + $2,163.0769
Total assets= $6,107.6922
Now let calculate the Net fixed assets
Net fixed assets = $6,107.6922 - $1,120
Net fixed assets = $4,987.69
Therefore How much does the firm have in net fixed assets is $4,987.69