Water and Power Co. (W&P) had sales of $1,790,000 last year on fixed assets of $345,000. Given that W&P’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset turnover ratio was
Water and Power Co. (W&P) had sales of $1,790,000 last year on fixed assets of $345,000. Given that W&P’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset turnover ratio was
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter9: Long-term Assets: Fixed And Intangible
Section: Chapter Questions
Problem 5MAD
Related questions
Question
Water and Power Co. (W&P) had sales of $1,790,000 last year on fixed assets of $345,000. Given that W&P’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset turnover ratio was
x. (Note: Round your answer to two decimal places.)
How much sales could Water and Power Co. (W&P) have supported with its current level of fixed assets? (Note: Round your answer to the nearest whole number.)
$1,695,790
$1,978,422
$1,884,211
$1,790,000
When you consider that W&P’s fixed assets were being underused, what should be the firm’s target fixed assets to sales ratio? (Note: Round your answer to two decimal places.)
19.23%
17.39%
18.31%
16.48%
Suppose W&P 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 _______________ .(Note: Round your answer to two decimal places.)
Expert Solution
Step 1
Hi student
Since there are multiple questions, we will answer only first question.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College