Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the companys fixed

Question:

Williamson Industries has $7 billion in sales and $1.944 billion 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?

b. What is Williamson’s target fixed assets/sales ratio?

c. If Williamson’s sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Question Posted: Jan 08, 2019 12:07 PM

See More Questions

Revise each of the following items to make the sentences shorter and more readable. A. General Mills is a dominant player in the American yogurt industry with $1.5 billion in sales, and it sells...
Jetstream Aerospace is a world leader in the design and manufacture of innovative aviation products and services for the regional. business. and amphibious aircraft markets. These product lines...
Earleton Manufacturing Company has $3 billion in sales and $787,500,000 in fixed assets. Currently, the companys fixed assets are operating at 80% of capacity. a. What level of sales could Earleton...
Molly earns a gross yearly salary of $132,676. She has no dependent children and made the following tax deductible purchases: Charitable contributions: $5,401 Student loan interest: $1,429 When she...
Dene Company uses a perpetual inventory system and reports the following inventory transactions for the month of July: Instructions (a) Calculate the cost of goods sold and ending inventory under (1)...
Amidst the ever-evolving landscape of global finance, how do central banks strategically employ unconventional monetary policy tools such as quantitative easing to modulate the intricate interplay...
What is the systems model of T&D? Discuss how HRIS T&D applications can assist in carrying out the steps in the systems model.
Keepsake Heirlooms, Inc. manufactures personalized baby quilts. An experienced embroiderer can personalize 10 quilts per hour. Because the repetitive nature of the sewing can lead to carpal tunnel...
Define the following sets (30 points) (a) X = {(x, y) = R: y = f(x) = 3x + 3y 42} =1 (b) Y={(x, y) = R: y = f(x) = 2x + 2y 42} (c) Z = XUY (d) Prove whether or not each set defined above is convex?
a. What is the maximum amount that Roy should advise his client to withdraw on her 60th birthday? If she lives until age 90, how much should the client expect to leave to her heirs? b. Roy is now...
At year-end 2018, total assets for Arrington Inc. were$1.8 million and accounts payable were $450,000. Sales, which in 2018 were $3.0 million,are expected to increase by 25% in 2019. Total assets and...
Austin Grocers recently reported the following 2018 income statement (in millions of dollars): Sales .............................................................................$700 Operating costs...
An attribute definition includes (a) name, data type, and default value if applicable (b) name, arguments, and constraints (c) constraints, data type, and a default value, if applicable (d) name,...
Country Club Activities At the Avonlea Country Club, 72% of the members play bridge and swim, and 84% play bridge. If a member is selected at random, find the probability that the member swims, given...
Determine the following probabilities. Enter your final answers as reduced fractions. Two coins are flipped. Find the probability that the first coin land on heads and the second coin lands on heads....
what is transiction in database? write a detailed note with some examples on it
[3) A sample of size n = 100 produced the sample mean of m = 17. Assuming the sample standard deviation = 4, compute a 95% confidence interval for the mean m. [4] Assuming the population standard...
8. Of 560 samples of seafood purchased from various kinds of food stores in different regions of a country and genetically compared to standard gene fragments that can identify the species, 66% were...
The plug has a diameter of 30 mm and fits within a rigid sleeve having an inner diameter of 32 mm. Both the plug and the sleeve are 50 mm long. Determine the axial pressure p that must be applied to...
A spacecraft has left the earth and is moving toward Mars. An observer on the earth finds that, relative to measurements made when the spacecraft was at rest, its a. length is shorter b. KE is less...
Assume that Bon Temps is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6% rate. What is the firms...
What is its current stock price?
What is the stocks expected value 1 year from now?
How in a perfect world would muni bonds pay interest? Explain the correlation between the greater premium and high tax states. Will you invest in Muni bonds based on the new findings? Please discuss.
CityLight Co. is struggling financially. Prior to debt renegotiations, the company's total assets were $11 million and total liabilities were $18 million. The company has negotiated with the debtors...
How might technology change in the future? How will technology make our lives better in the next ten years? What kinds of technology are you most excited about? What do you think will be the next...

Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the companys fixed

Question:

Step by Step Answer:

Sales 7000000000 FA 1944000000 FA are operated at 90 capacity a Full capa...View the full answer

Fundamentals of Financial Management

Students also viewed these Business questions