The Phone Builder Corporation had sales of $32 last year and fixed assets of $19. Management calculated full capacity sales to equal $46. What target fixed assets to sales ratio (in percent) should the corporation set?

 

The CFO of  Rosecurity, is planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity and the firm data (in millions of dollars) for use in your forecast are shown below:

Last year's sales = $111
Next year's sales = $159
Last year's spontaneous liabilities = $54
Last year's operating assets = $290
Last year's profit margin = 11%
Target payout ratio = 21%

 

 What is the AFN for the coming year (in millions)?

 

Typhoonforce generated $62 in sales during 2022, and its year-end total assets were $30. Also, at year-end 2022, spontaneous liabilities were $6. Looking ahead to 2023, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 12%, and its payout ratio will be 25%. What is the self-supporting growth rate for Typhoonforce (in percent)?

 

Moonsun had $322 million of sales last year, and it had $200 million of fixed assets that were being operated at 70% of capacity.

If Moonsun had operated at full capacity, how large could sales have been (in millions)?

Answer rating: 100% (QA)

To answer these questions we need to use some financial equations and formulas Lets start with the first question Question 1 Target fixed assets to sa... View the full answer