The Maurer Company has a long-term debt ratio of .70 and a current ratio of 1.70. Current liabilities are $960, sales are $5,120, profit margin is 9.20 percent, and ROE is 17.90 percent. What is the amount of the firm's net fixed assets?

We can calculate the desired result as follows:

Current Ratio = 1.70

Current Liabilities = $ 960

Sales = $ 5,120

Profit margin = 9.20%

ROE = 17.90%

Current ratio = Current assets / Current liabilities

Current assets = (1.70 * 960) = $ 1,632

Profit margin = Net Income / Sales

Net Income = (5120 * 9.20%)

= 5120 * 0.092

= $ 471.04

ROE = Net Income / Equity

Equity = (471.04 / 17.90%)

= 471.04 / 0.1790

= $ 2,631.5084

Long term debt ratio = Long term debt / (Long term debt + Equity)

0.70 = Long term debt / (Long term debt + 2631.5084)

0.70 * (Long term debt + 2631.5084) = Long term debt

0.70 Long term debt + 1842.05587 = Long term debt

0.30 Long term debt = 1842.05587

Long term debt = 1842.05587 / 0.30

= $ 6,140.19

Total Assets = Total Liabilities

Total Current Assets + Total Net Fixed Assets = Total Liabilities + Total Equity

Total Net Fixed Assets = Total Liabilities + Total Equity - Total Current Assets

= (960 + 6,140.19) + 2,631.51 - 1632

= 7,100.19 + 2631.51 - 1632

= $ 8099.69 or $ 8,100