Define each of the following terms and give and short example:
f. Full capacity sales; target fixed assets to sales ratio; required level of fixed assets
1.Full capacity sales - It refers to the sales amount and capacity of firm upto which a firm does not any external financing.
Example- A company operates at 90 percent upto which it doesnot need any external financial and it will be full capacity sales.
2.target fixed assets to sales ratio- It is a ratio of a certain group of assets to the amount of sales. It reflects that the utilization of assets are being optimized .The Higher Target fixed assets to sales ratio is preferred.
3.Required level of fixed assets- Required level of fixed assets reflects that Adequate Fixed Assets A firm needs in order to maximize it's overall productions.
Define each of the following terms and give and short example: f. Full capacity sales; target...
In your own words define each of the following terms and give and short example: 1.Full capacity sales 2. Target fixed assets to sales ratio 3. Required level of fixed assets
Define each of the following terms: a. Operating plan; financial plan b. Spontaneous liabilities; profit margin; payout ratio c. Additional funds needed (AFN); AFN equation; capital intensity ratio; self-supporting growth rate d. Forecasted financial statement approach using percent of sales e. Excess capacity; lumpy assets; economies of scale f. Full capacity sales; target fixed assets to sales ratio; required level of fixed assets
SHOW WORK FOR CALCULATIONS 1. Complete questions: Define each of the following terms: a. Operating plan; financial plan b. Spontaneous liabilities; profit margin; payout ratio c. Additional funds needed (AFN); AFN equation; capital intensity ratio; self-supporting growth rate d. Forecasted financial statement approach using percentage of sales e. Excess capacity; lumpy assets; economies of scale f. Full capacity sales; target fixed assets to sales ratio; required level of fixed assets 2. Complete problem: Premium for Financial Risk XYZ, Inc. has...
Please define two of the following terms and give an example of the relationship between the two terms you've chosen: Unit Contribution Margin, Break Even Sales, Break Even Units, Fixed Costs, Variable Costs, Mixed Costs
EXCESS CAPACITY Williamson Industries has $4 billion in sales and $3 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. b. What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal places....
EXCESS CAPACITY Williamson Industries has $7 billion in sales and $1.2 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. $ b. What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal...
EXCESS CAPACITY Williamson Industries has $3 billion in sales and $1.3 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. $______? What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal places. =_____...
Quantitative Problem 1: Beasley Industries' sales are expected to increase from $4 million in 2017 to $5 million in 2018, or by 25%. Its assets totaled $2 million at the end of 2017. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2017, current liabilities are $720,000, consisting of $140,000 of accounts payable, $400,000 of notes payable, and $180,000 of accrued liabilities. Its profit margin is forecasted to be 4%,...
Quantitative Problem 1: Beasley Industries' sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $3 million at the end of 2019. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $740,000, consisting of $160,000 of accounts payable, $450,000 of notes payable, and $130,000 of accrued liabilities. Its profit margin is forecasted to be 4%,...
Quantitative Problem 1: Beasley Industries' sales are expected to increase from $4 million in 2013 to $5 million in 2014, or by 25%. Its assets totaled $3 million at the end of 2013. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2013, current liabilities are $800,000, consisting of $120,000 of accounts payable, $500,000 of notes payable, and $180,000 of accrued liabilities. Its profit margin is forecasted to be 4%,...