CH 12 5. Excess capacity adjustments

Three Waters Co. had sales of $1,790,000 last year on fixed assets of $380,000. Given that Three Waterss fixed assets were being used at only 96% of capacity, then the firms fixed asset turnover ratio was_______

x. (Note: Round your answer to two decimal places.)

How much sales could Three Waters Co. have supported with its current level of fixed assets? (Note: Round your answer to the nearest whole number.)

$1,864,583

$1,584,896

$1,771,354

$2,237,500

When you consider that Three Waterss fixed assets were being underused, what should be the firms target fixed assets to sales ratio? (Note: Round your answer to two decimal places.)

24.46%

17.32%

19.36%

20.38%

Suppose Three Waters 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.)