Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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How much can sales increase before any new fixed assets are needed on these general accounting question?
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- Thorpe Mfg., Inc., is currently operating at only 85 percent of fixed asset capacity. Current sales are $310,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Maximum sales growth %arrow_forwardWestern Gas & Electric Co. (WG&E) had sales of $1,550,000 last year on fixed assets of $270,000. Given that WG&E’s fixed assets were being used at only 94% of capacity, then the firm’s fixed asset turnover ratio was? How much sales could Western Gas & Electric Co. (WG&E) have supported with its current level of fixed assets? When you consider that WG&E’s fixed assets were being underused, what should be the firm’s target fixed assets to sales ratio? Suppose WG&E is forecasting sales growth of 22% 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?arrow_forwardBuzzy Manufacturing Company has P2 billion in sales and P0.6 billion in fixed assets. Currently, the company’s fixed assets are operating at 80% of capacity. What level of sales could Buzzy have obtained if it have been operating at full capacity? What is Buzzy’s target fixed assets to sales ratio? If Buzzy’s sales increased by 30%, how large is the increase in fixed assets will the company need to meet its target fixed assets to sales?arrow_forward
- Williamson Industries has $3 million in sales and $2.838 million in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent. 2$ b. What is Williamson's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. % c. If Williamson's sales increase 14%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent.arrow_forwardHodgkiss Mig, Inc, is currently operating at only 92 percent of fixed asset capacity Current sales are $780,000. Fixed assets are $470,000 and sales are projected to grow to $880,000. How much in new foxed assets are required to support this growth in sales? Assume the company wants to operate at full capacity (Do not round intermediate celculetions and round your answer to 2 decimal places,e.g.. 32.16) O Answer is complete but not entirely correct. New fxed assets 487 B72000arrow_forwardGandi Mfg., Inc., is currently operating at only 80% fixed asset capacity. Current sales are $610,000. How fast sales can grow before any new fixed asset are needed? а. 30% b. 40% c. 25% d. 15%arrow_forward
- Last year Wei Guan Inc. had $275 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? Question options: $137.71 $159.92 $115.50 $155.48 $148.08arrow_forwardEarleton Manufacturing Company has $3 billion in sales and $661,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. a. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answers completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.$ ____ 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 30%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round intermediate calculations. Round your answer to the nearest dollar.$ ____arrow_forwardAusel's Cabinets has $27,600 in net fixed assets and is operating at 96 percent of capacity. Sales are $36,200 currently. What is the required increase in fixed assets if sales are projected to increase by 14 percent? Multiple Choice$2,605 $6,833 $4,205 $3,400, $0arrow_forward
- Stark Industries reports that its average operating assets are $511,000,000 and its net operating income is $147,000,000 on sales of $1,645,000,000 What is the residual income if the required rate of return is 0.11? Round your answer to the nearest dollar.arrow_forward1 Last year Baron Enterorises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets? Answer $170.09 S179.04 S188.46 S197.88 $207.78arrow_forwardA company is trying to ascertain the selling price per unit for their product. They know the OCF is €170,654, interest expense is €21,300, and fixed costs are €116,900. Variable costs are €25.89 per unit with 20,000 units expected to be sold. The tax rate is 34%. Fixed assets total €759,500 and are being depreciated straight-line to zero over seven years. What is the selling price per unit given this information? €40.26 €40.67 €41.32 €42.78 None of the above.arrow_forward
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