FIGURE 14.2 Flum Packages, Inc. Assets Liabilities & Equity Current assets $10,000 Current Liabilities $ 5,000 Fixed assets 20,000 Long- term debt 12,000 Equity 1 3,000 Total $30,000 Total $30,000 The company earns 5 percent on current assets and 15 percent on fixed assets. The firm's current liabilities cost 7 r. maintain and the average annual cost oft'emg funds is 20 percent. 13)The firm's initial annual profits on total assets is . (See Figure 14.2) 13) A) $3,500 B)$3,000 C) $4,500 D) $2,500 Answer:A Explanation: A) B) C) D)