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&Ps fixed assets
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&Ps fixed assets were being used at only 93% of capacity, then the firms 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.)
$1,756,989
$1,849,462
$1,664,516
$2,219,354
When you consider that W&Ps fixed assets were being underused, what should be the firms target fixed assets to sales ratio? (Note: Round your answer to two decimal places.)
21.41%
17.84%
16.95%
16.06%
Suppose W&P is forecasting sales growth of 19% for this year. If existing and new fixed assets are used at 100% capacity, the firms expected fixed-assets turnover ratio for this year is .(Note: Round your answer to two decimal places.)
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