What is the amount of the firm’s net fixed assets?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 3-15 Ratios and Fixed Assets

The Mikado Company has a ratio of long-term debt to long-term debt plus equity of .26 and a current ratio of 1.1. Current liabilities are $820, sales are $6,240, profit margin is 8.5 percent, and ROE is 18.7 percent. What is the amount of the firm’s net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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Information Provided:

  • Long-term debt to total debt plus equity = 0.26
  • Current ratio = 1.1
  • Current liabilities = $820
  • Sales = $6240
  • Profit margin = 8.5%
  • ROE = 18.70%

 

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