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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,

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Answer:

Current Ratio = Current Assets / Current Liabilities
1.60 = Current Assets/ $940
Current Assets = $1,504

Profit Margin = Net Income / Net Sales * 100
9.7 = Net Income / $6,360 * 100
Net Income = $616.92

Return on Equity = Net Income / Total Equity * 100
19.9 = $616.92 / Total Equity * 100
Total Equity = $3,100.10

Long Term Debt Ratio = Long term Debt / (Current Liabilities + Long Term Debt + Equity)
0.38 = Long term Debt / ($940 + Long term Debt + $3,100.100)
0.38 = Long term Debt / ($4,040.10 + Long term Debt)
$1,535.238 + 0.38 * Long term Debt = Long term Debt
Long term Debt = $2,476.19

Total Liabilities and Equity = Total Assets
Current Liabilities + Long Term Debt + Equity = Current Assets + Net Fixed Assets
$940 + $2,746.19 + $3,100.10 = $1,504 + Net Fixed Assets
Net Fixed Assets = $5,012.29

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