Question

In: Finance

Williamson Industries has $4 billion in sales and $1 billion in fixed assets. Currently, the company's...

Williamson Industries has $4 billion in sales and $1 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity.

  1. 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.
    $

  2. What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal places.
    %

  3. If Williamson's sales increase 8%, 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. Negative amount should be indicated by a minus sign. Do not round intermediate calculations.
    $

Solutions

Expert Solution

a.Level of sales at full capacity= $4 billion/ 0.95

                                                          = $4,210,526,316.

b.Target fixed assets to sales ratio= 4 billion/ $1 billion

                                                                  = 1.00

c.To meet the target asset to sales ratio, sales are increased as a fraction of sales.

= $1 billion*8%

= $80,000,000

In case of any query, kindly comment on the solution.

In case of any query, kindly comment on the solution.


Related Solutions

1. Williamson Industries has $4 billion in sales and $1.8 billion in fixed assets. Currently, the...
1. Williamson Industries has $4 billion in sales and $1.8 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. % If...
Williamson Industries has $7 billion in sales and $1.941 billion in fixed assets. Currently, the company's...
Williamson Industries has $7 billion in sales and $1.941 billion in fixed assets. Currently, the company's fixed assets are operating at 90% 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? Do not round intermediate calculations. Round your answer to two...
Williamson Industries has $5 billion in sales and $2.732 billion in fixed assets. Currently, the company's...
Williamson Industries has $5 billion in sales and $2.732 billion in fixed assets. Currently, the company's fixed assets are operating at 90% 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? Do not round intermediate calculations. Round your answer to two...
Williamson Industries has $6 billion in sales and $2.8 billion in fixed assets. Currently, the company's...
Williamson Industries has $6 billion in sales and $2.8 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. c. If...
Williamson Industries has $3 billion in sales and $1.6 billion in fixed assets. Currently, the company's...
Williamson Industries has $3 billion in sales and $1.6 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.       %...
Williamson Industries has $3 billion in sales and $1.8 billion in fixed assets. Currently, the company's...
Williamson Industries has $3 billion in sales and $1.8 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. % If Williamson's...
Williamson Industries has $7 billion in sales and $1.4 billion in fixed assets. Currently, the company's...
Williamson Industries has $7 billion in sales and $1.4 billion in fixed assets. Currently, the company's fixed assets are operating at 90% 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. % If Williamson's...
Williamson Industries has $5 billion in sales and $1.6 billion in fixed assets. Currently, the company's...
Williamson Industries has $5 billion in sales and $1.6 billion in fixed assets. Currently, the company's fixed assets are operating at 90% 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. % If Williamson's...
Williamson Industries has $5 billion in sales and $1.869 billion in fixed assets. Currently, the company's...
Williamson Industries has $5 billion in sales and $1.869 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? Do not round intermediate calculations. Round your answer to two...
Williamson Industries has $5 billion in sales and $1.004 billion in fixed assets. Currently, the company's...
Williamson Industries has $5 billion in sales and $1.004 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? Do not round intermediate calculations. Round your answer to two...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT