Water and Power Co. (W&P) had sales of $1,550,000 last year on fixed assets of...
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Finance
Water and Power Co. (W&P) had sales of $1,550,000 last year on fixed assets of $395,000. Given that W&Ps fixed assets were being used at only 96% of capacity, then the firms fixed asset turnover ratio was .
How much sales could Water and Power Co. (W&P) have supported with its current level of fixed assets?
$1,453,125
$1,614,583
$1,856,770
$1,291,666
When you consider that W&Ps fixed assets were being underused, what should be the firms target fixed assets to sales ratio?
28.13%
24.46%
22.01%
19.57%
Suppose W&P is forecasting sales growth of 18% for this year. If existing and new fixed assets are used at 100% capacity, the firms expected fixed assets turnover ratio for this year is ?
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