B. This answer is incorrect. See the correct answer for a complete explanation.

C. Before we can solve for fixed assets, we need to solve for accounts receivable and inventory. To solve for accounts receivable, we need to use the quick ratio we are given, which is 1.2. The quick ratio is equal to (Cash + A/R) ÷ current liabilities. We can calculate that current liabilities equal 30. This is because total assets are 100 and we know that equity + liabilities is equal to assets. So if liabilities and equity are 100 and long-term liabilities (40) plus equity (30) equal 70, then current liabilities must be 30. Putting this into the formula for the Quick Ratio we get [(10 + X) ÷ 30 = 1.2]. Solving for X we get 26 and this is the balance of accounts receivable. The next balance we need to find is inventory. To determine inventory, we need to use the current ratio formula of Current Assets ÷ Current Liabilities. We know that this is equal to 1.4. Using the formula we get [(10 + 26 + X) ÷ 30 = 1.4]. Solving for X we get 6 and this is the inventory balance. Finally, a fixed asset is the balancing amount on the asset side. We have total assets of 100, cash of 10, A/R of 26, and inventory of 6. 100 - 10 - 26 - 6 = 58, and this is the balance of fixed assets. There is often more than one way to solve a problem, and on a timed exam, shorter is better. Here is another, shorter method of calculating the answer, contributed by one of our students: Current Assets ÷ Current Liabilities = 1.4. On the liabilities and equity side of the balance sheet, current liabilities is the only figure missing. Therefore, we can calculate that a current liability is 100 - 30 - 40, or 30. Now, we can solve for current assets:

Current Assets ÷ 30 = 1.4

Current Assets = 1.4 × 30

Current Assets = 42

Fixed Assets = Total Assets - Current Assets

Fixed Assets = 100 - 42

Fixed Assets = 58

D. This answer is incorrect. See the correct answer for a complete explanation.