Question

5. Excess capacity adjustments Water and Power Co. (W&P) had sales of $1,720,000 last year on fixed assets of $330,000. Given that W&P’s fixed assets were being used at only 96% of capacity, then the firm’s fixed asset turnover ratio was x. (Note: Round your answer to two decimal places.) How much sales could Water and Power Co. (W&P) have supported with its current level of fixed assets? (Note: Round your answer to the nearest whole number.) $1,881,250 $1,791,667 $1,970,834 $1,612,500 When you consider that W&P’s fixed assets were being underused, what should be the firm’s target fixed assets to sales ratio? (Note: Round your answer to two decimal places.) 19.34% 18.42% 16.58% 20.26% Suppose W&P is forecasting sales growth of 18% for this year. If existing and new fixed assets are used at 100% capacity, the firm’s expected fixed-assets turnover ratio for this year is .(Note: Round your answer to two decimal places.

Answer #1

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Newtown Propane had sales of $1,550,000 last year on fixed
assets of $395,000. Given that Newtown’s fixed assets were being
used at only 95.00% of capacity, then the firm’s fixed asset
turnover ratio (rounded to three decimal places) was???
x . Newtown was using its fixed assets at only 95.00% of
capacity last year. How much sales could the firm have supported
last year with its current level of fixed assets?
$1,386,842 $1,631,579 $1,794,737 $1,876,316
When you consider that Newtown’s...

Newtown Propane had sales of $1,550,000 last year on fixed
assets of $345,000. Given that Newtown’s fixed assets were being
used at only 93% of capacity, then the firm’s fixed asset turnover
ratio was ___________.
A.) 4.493x C.) 3.81905x
B.) 4.26835x D.) 4.71765x
How much sales could Newtown Propane have supported with its
current level of fixed assets?
A.) $1,333,334
B.) $1,916,667
C.) $1,666,667
D.) $1,583,334
When you consider that Newtown’s fixed assets were being
underused, what should be the...

EXCESS CAPACITY
Earleton Manufacturing Company has $3 billion in sales and
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are operating at 85% of capacity.
What level of sales could Earleton have obtained if it had been
operating at full capacity? Write out your answer completely. Round
your answer to the nearest whole number.
$
What is Earleton's target fixed assets/sales ratio? Do not
round intermediate calculations. Round your answer to two decimal
places.
%
If Earleton's sales increase...

EXCESS CAPACITY
Williamson Industries has $8 billion in sales and $2.6 billion
in fixed assets. Currently, the company's fixed assets are
operating at 95% of capacity.
What level of sales could Williamson Industries have obtained if
it had been operating at full capacity? Write out your answer
completely. For example, 25 billion should be entered as
25,000,000,000. Round your answer to the nearest cent.
$ 8,421,052,631.57
What is Williamson's target fixed assets/sales ratio?
Round your answer to two decimal places....

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EXCESS CAPACITY Williamson Industries has $3 billion in sales and
$2.8 billion in fixed assets. Currently, the company's fixed assets
are operating at 95% of capacity. What level of sales could
Williamson Industries have obtained if it had been operating at
full capacity? Write out your answer completely. For example, 25
billion should be entered as 25,000,000,000. Round your answer to
the nearest cent. $ 3157000000 What is...

Weber Interstate Paving Co. had $450 million of sales and $225
million of fixed assets last year, so its FA/Sales ratio was 50%.
However, its fixed assets were used at only 90% of capacity. If the
company had been able to sell off enough of its fixed assets at
book value so that it was operating at full capacity, with sales
held constant at $450 million, how much cash (in millions) would it
have generated?
Select the correct answer.
a....

A.
Hodgkiss Mfg., Inc., is currently operating at only 92 percent
of fixed asset capacity. Current sales are $780,000. How fast can
sales grow before any new fixed assets are needed? (Do not
round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
B.
Ramble On Co. wishes to maintain a growth rate of 11 percent per
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Beasley Industries' sales are expected to increase from $4
million in 2017 to $5 million in 2018, or by 25%. Its assets
totaled $2 million at the end of 2017. Beasley is at full capacity,
so its assets must grow in proportion to projected sales. At the
end of 2017, current liabilities are $800,000, consisting of
$160,000 of accounts payable, $450,000 of notes payable, and
$190,000 of accrued liabilities. Its profit margin is forecasted to
be 4%, and its dividend...

Earleton Manufacturing Company has $3 billion in sales and
$600,000,000 in fixed assets. Currently, the company's fixed assets
are operating at 75% of capacity.
What level of sales could Earleton have obtained if it had been
operating at full capacity? Write out your answer completely. Round
your answer to the nearest whole number.
$
What is Earleton's target fixed assets/sales ratio? Round your
answer to two decimal places.
%
If Earleton's sales increase 35%, how large of an increase in...

Earleton Manufacturing Company has $3 billion in sales and
$900,000,000 in fixed assets. Currently, the company's fixed assets
are operating at 85% of capacity.
a. What level of sales could Earleton have obtained if it had
been operating at full capacity? Write out your answer completely.
Round your answer to the nearest whole number.
b. What is Earleton's target fixed assets/sales ratio? Do not
round intermediate calculations. Round your answer to two decimal
places.
c. If Earleton's sales increase 35%,...

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