Answer:
Net Fixed assets are $3523.99
Step-by-step explanation:
To calculate the value of net fixed assets, we will use the basic accounting equation. The basic accounting equation is,
Assets = Liabilities + Equity
We will first calculate the value of equity.
We know that the profit margin is 9.8% which means a net profit of,
Net Profit = 0.098 * 5180 = $507.64
This net profit is equal to 17.2% of ROE, where ROE is net profit expressed as a percentage of total equity. Thus, total equity is,
ROE = Net Profit / Total equity
0.172 = 507.64 / Total equity
Total equity = 507.64 / 0.172 = $2951.395349
A debt ratio of 40% means that debt is 40% of total assets while equity is the remaining 60%. If the 60% of total assets is $2951.395349 then the total value of assets or 100% will be,
Total assets = 2951.395349 * 100/60
Total assets = $4918.99
A current ratio of 1.5 means that the current assets are 1.5 times of current liabilities. Thus current assets are = 1.5 * 930 = 1395
Net Fixed assets = Total assets - current assets
Net Fixed assets = 4918.99 - 1395 = 3523.99