5. Excess capacity adjustments Monk Consortium Corp. (Monk-Con) had sales of $1,720,000 last year on fixed...
4. Excess capacity adjustments Monk Consortium Corp. (Monk-Con) currently has $540,000 in total assets and sales of $1,400,000. Half of Monk-Con's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is Monk-Con was using its fixed assets at only 96% of capacity last year. How much sales...
3. Excess capacity adjustments Monk Consortium Corp. (Monk-Con) currently has $610,000 in total assets and sales of $1,550,000. Half of Monk-Con's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 18% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ Monk-Con was using its fixed assets at only 93% of capacity last year. How much...
Monk Consortium Corp. (Monk-Con) currently has $645,000 in total assets and sales of $1,550,000. Half of Monk-Con's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ Monk-Con was using its fixed assets at only 93% of capacity last year. How much sales could the firm...
Ch 16: Assignment - Financial Planning and Forecasting 3. Excess capacity adjustments Newtown Propane had sales of $1,820,000 last year on fixed assets of $345,000. Given that Newtown's fixed assets were being used at only 96% of capacity, then the firm's fixed asset turnover ratio was How much sales could Newtown Propane have supported with its current level of fixed assets? $2,180,208 $2,275,000 $1,990,625 $1,895,833 When you consider that Newtown's fixed assets were being underused, what should be the firm's...
Osato Chemicals Inc. had sales of $1,550,000 last year on fixed assets of $345,000. Given that Osato's fixed assets were being used at only 96% of capacity, then the firm's fixed asset turnover ratio was . (Note: Round your answer to two decimal places.) How much sales could Osato Chemicals Inc. have supported with its current level of fixed assets? $1,372,396 $1,291,666 $1,614,583 $1,776,041 When you consider that Osato's fixed assets were being underused, what should be the firm's target...
3. Excess capacity adjustments Western Gas & Electric Co. (WG&E) currently has $540,000 in total assets and sales of $1,550,000. Half of WG&E's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 19% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ WG&E was using its fixed assets at only 95% of capacity last year....
4. Last year Hamdi Corp. had sales of $500, 000, operating costs of $450,000, and year-e assets of $395,000. The debt-to-total-assets ratio was 178, the interest rate on the debt was 7.58, and the firm's tax rate was 35%. The new CFO wants to see how the ROE would have been affected if the firm had used a 50% debt ratio. Assume that sales, operating costs, total assets, and the tax rate would not be affected, but the interest rate...
Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 52.5%. Based on the DuPont equation, what was Vaughn's ROE? Select the correct answer.
Last year ABC Corp. had sales of $525,000 and a net income of $12,600, and its year-end assets were $100,000. The firm's total-liabilities-to-total-assets ratio was 50.00%. Based on the DuPont equation, what was ABC's ROE? Show your answer in this format: 12.34%
Last year Rowland Tech had $500,000 of sales and $200,000 of fixed assets, so its FA/Sales ratio was 40%. However, its fixed assets were used at only 60% of capacity. Now the company is planning its financial forecast for the coming year. At what level should Rowland set its target fixed assets/sales ratio?