About the excess capacity

Assignment Help Financial Management
Reference no: EM13769230

Excess capacity

Walter Industries has $8 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 Walter 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 Walter's target fixed assets/Sales ratio? Round your answer to two decimal places.

%

If Walter's sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. Do not round intermediate calculations.

$

Reference no: EM13769230

Questions Cloud

Explain how google analyzed their value chain : Write a summary of the case study - In your paper explain how Google analyzed their value chain for the purpose of determining where they were able to create value when using their resources, capabiltites and core competencies.
Difference between an express and an implied contract : What is the difference between an express and an implied contract? What elements must be in place for formation of a contract
Invasions of privacy and consumer manipulation : Some consumer groups believe that this information can lead to invasions of privacy and consumer manipulation. What's your take?
Nutritional care plan issue : Does your patient/client require a dietary modification of their regular diet?
About the excess capacity : Walter Industries has $8 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 Walter Industries have obtained if it had been operating at full capacity? W..
Sales increase-having to raise funds externally : Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.4 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..
What laws do you see that seem to fit the model : How do we choose which laws are just and which ones are not? What laws do you see that seem to fit the model of what King would call unjust
Case analysis - dominos : Write a summary of the case study. Be sure to discuss reasons why Domino's would use an acquisition strategy to achieve strategic competitiveness.
Write an essay on a rose for emily by william faulkner : Write a Narrative essay on A Rose for Emily by William Faulkner.

Reviews

Write a Review

Financial Management Questions & Answers

  Can you help mr. jackson develop a financial plan

Can you help Mr. Jackson develop a financial plan? Do you think his growth plan is feasible? Specific calculations are not necessary, but you should describe any specific calculations one may use to assist Mr. Jackson.

  In an efficient market-price of a security

In an efficient market, the price of a security will:

  Depth analysis of the performance of the company

Provide a brief summary of additional information which you would require in order to enable a more in depth analysis of the performance of the company and comment upon the financial position of JH Alarms plc in the light of the last three years' ..

  Revenue producing investments together with annual rates

The employs credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union inverts in risk-free securities to stabilize income. Rish-f..

  Explain what was the original annual rate of return

What was the original annual rate of return needed to reach your goal when you started the fund two years ago? With only $140,000 in the fund and 10 years remaining until your first child starts college, what annual rate of return would the fund ha..

  The holder received no interest

A bond issued by Standard Oil worked as follows. The holder received no interest. At the bond’s maturity the company promised to pay $1,000 plus an additional amount based on the price of oil at that time. The additional amount was equal to the produ..

  Compare the performance of fidelity freedom

Compare the performance of Fidelity Freedom 2010 Fund to the performance of Fidelity Freedom 2040 Fund. Explain the reasons for the difference in portfolio performance. Discuss what this suggests relating to your investments.

  Explain the functions of financial markets

Explain the functions of financial markets and discuss why a dollar tomorrow cannot be worth less than a dollar the day after tomorrow.

  Indifferent between accepting or rejecting the project

Barrett Pharmaceuticals is considering a drug project that costs $2.47 million today and is expected to generate end-of-year annual cash flows of $221,000 forever. At what discount rate would Barrett be indifferent between accepting or rejecting the ..

  General business issues

Advice for Dealing with Business Problems

  Assuming an interest rate of compounded semi-annually

What is the future value of $1,590 in 16 years assuming an interest rate of 9.75 percent compounded semi-annually? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (..

  Level outlay under amortization method with interest rate

Show that the borrower’s periodic outlay for a standard sinking fund method repayment at rate j is larger than the level outlay under amortization method with the interest rate i, if i > j.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd