What steps are needed to arrive at the final answer

Assignment Help Finance Basics
Reference no: EM132685113

Last year Omar Industries had $900 million of sales and $450 million of fixed assets, so its FA/Sales ratio was 50%. However, its fixed assets were used at only 65% of capacity. If the company had been able to sell off enough of its fixed assets at book value, so that it was operating at full capacity, with sales held constant at $900 million, how much cash (in millions) would it have generated?

What steps are needed to arrive at the final answer?

Reference no: EM132685113

Questions Cloud

Solve denise boutique inventory-on-hand period : Solve Denise's Boutique's inventory-on-hand period under both LIFO and FIFO. Which method generates the 'better' inventory-on-hand' ratio?
What is the outstanding loan balance at the end of 5 years : Using the amortization method a person borrows $5000 at an effective rate of 8% per annum and agrees to repay the loan with payments at the end of each year.
What is the present value of the operating cash flows : The tax rate is 34%. Assume all sales and costs occur at the end of each year. What is the present value of the operating cash flows (OCF)?
Private benefit would conflict with a public benefit : What if you could get a private benefit but to get that private benefit would conflict with a public benefit? Would you choose the benefit to you (private
What steps are needed to arrive at the final answer : Last year Omar Industries had $900 million of sales and $450 million of fixed assets, so its FA/Sales ratio was 50%. However, its fixed assets were used
What journal entry to replenish the account would : A $200 petty cash fund has cash of $30 and receipts of $161. The journal entry to replenish the account would include a credit to
Cost of common from retained earnings-eakins inc : Eakins Inc.'s common stock currently sells for $55.00 per share, the company expects to earn $3.25per share during the current year, its expected payout ratio
Discuss the benefits that could be gained by investors : Discuss the benefits that could be gained by investors from reviewing the operating segment disclosures when making future decisions on investment.
What is the project payback-deblassio associates : DeBlassio Associates is considering a project that has the following cash flow data. What is the project's payback?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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