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The Maurer Company has a long-term debt ratio of 38 and a current ratio of 1.60. Current liabilities are $940, sales are $6,3

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Answer #1

Answer)

Profit margin=Net income/sales

Net income=(0.097*6,360)=$616.92

Current ratio =Current assets/Current liabilities

Current assets=(1.6*940)=$1,504

ROE=Net income/Equity

Equity=(616.92/0.199)=$3,100.10

Long term debt ratio=Long term debt/(Long term debt+Total equity)

Long term debt =0.38*(Long term debt+3,100.10)

Long term debt =0.38Long term debt+1,178.04

Long term debt=1,178.04/(1-0.38)

=$1,900.06

Total assets=Total equity+Total liabilities

(Current assets+Net fixed assets)=(Current liabilities+Long term liabilities)+Total equity

(1,504+Net fixed assets)=(940+$1,900.06)+$3,100.10

Net fixed assets= 940 + 1,900.06 + 3,100.10 - 1,504

Net fixed assets=

=$4,436.16(Approx).

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