Question
Southern Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $560,000. Fixed assets are $430,000 and sales are
Southern Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $560,000. Fixed assets are $430,000 and sales are projected to grow to $770,000. How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Southern Mfg., Inc, is currently operating at only 90 percent of fixed asset capacity. Current sales are $560,000. Fixed assets are $430,000 and sales are projected to grow to $770,000. How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) New fixed assetsStep by Step Solution
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Entrepreneurial Finance Venture Capital Deal Structure And Valuation
Authors: Janet Kiholm Smith, Richard L. Smith
2nd Edition
1503603210, 978-1503603219
