Fixed assets or sales ratio, Finance Basics

Assignment Help:

Last year Nymphe Technologies had $450 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%.  However, its fixed assets were used at only 75% of capacity.  While forecasting the results for the next year, the company wants to set its target Fixed Assets/Sales ratio at the level it would have realized had it been operating at full capacity.  What target FA/Sales ratio should the company set?


Related Discussions:- Fixed assets or sales ratio

Example of baumol's model, Example of Baumol's Model ABC Ltd. creates ...

Example of Baumol's Model ABC Ltd. creates cash payments of Shs.10, 000 per week.  The interest rate at marketable securities is 12 percent and every moment the company sells

Illustrates the roles of money, Illustrates the roles of money? Roles...

Illustrates the roles of money? Roles of Money: a. A medium of exchange An asset which individuals obtain for the intention of trading quite than for their own consump

Real Estate - Mortgage Prequalification, Bob and Jackie came to your bank s...

Bob and Jackie came to your bank seeking an FHA mortgage. They want to know how large a mortgage they would be qualified for and what the terms would be. Bob is a pastry chef (

After tax return, Bill Smith, a manager of a restaurant/bar in Los Angele, ...

Bill Smith, a manager of a restaurant/bar in Los Angele, is in the 25% marginal tax bracket and pays additional 5% in taxes to the state of California. Bill has 20,000 invested in

Management money, where can I get money and how can I manage it

where can I get money and how can I manage it

Solutions to agency problem, Solutions to agency problem The bondholde...

Solutions to agency problem The bondholders might receive the following procedures to protect themselves from the process of the shareholders that might dilute the value of th

Interest rates, why borrow from a country with a high interest rate instead...

why borrow from a country with a high interest rate instead of a country with a low interest rate

A+/a1, A+/A1 It is one of the top ratings that a ratings agency allots ...

A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple

Explain the meaning of gross and net yield, Explain the meaning of Gross an...

Explain the meaning of Gross and Net Yield While gross yield refers to the yield realized by investor before paying taxes, net yield is what remains with him after paying th

Materials management - supply chain management, Materials Management - Supp...

Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal

Write Your Message!

Captcha
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