Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Last year Omar Industries had $900 million of sales and $450 million of fixed assets, so its FA/Sales ratio was 50%. However, its fixed assets

Last year Omar Industries had $900 million of sales and $450 million of fixed assets, so its FA/Sales ratio was 50%. However, its fixed assets were used at only 65% 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 $900 million, how much cash (in millions) would it have generated?

A.

Generated $150.00

B.

Generated $161.30

C.

Generated $164.01

D.

Generated $157.50

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino

6th Canadian edition

1259453146, 978-1259453144

More Books

Students also viewed these Finance questions