Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year,
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Question:
Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so its FA/Sales ratio was 50%. However, its fixed assets were used at only 45% 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 $450 million, how much cash (in millions) would it have generated?
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Related Book For
Fundamentals of Financial Management
ISBN: 978-1133541141
13th edition
Authors: Eugene F. Brigham, Joel F. Houston
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