Reference no: EM13924784
EXCESS CAPACITY ADJUSTMENTS
1. osato chemicals inc had sales of $1,790,000 last year on fixed assets of $395,000. given that osato's fixed assets were being used at only 92% of capacity, then the firms fixed asset turnover ratio was____?
2. how much sales could osato chemicals inc. have supported with its current level of fixed assets? A. $1,655,522 B. $1,751,087 C. $1,945,652 D. $2,042,935
3. When you consider that Osato's fixed assets were being underused, what should be the firms target fixed asset to sales ratio? A. 23.35% B. 20.30% C. 24.36% D. 21.32%
4. Suppose Osato is forecasting sales growth of 19% for this year. if existing and new fixed assets are used at 100% capacity, the firms expected fixed-assets turnover ratio for this year is A. 5.172x B. 5.911x C. 5.665x D. 4.926
Exchange of common stock a building
: Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed?
|
Calculate economic profits for both assets
: However, risk weighting is different - Credit Asset B requires 50% weighting while that of Credit Asset A is 100%. Calculate economic profits for both assets if the cost of capital is 10%.
|
Prepare a multiple-step income statement
: Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. Check figure: Net income should be $30,000.
|
Product offerings to reach a wider range of customers
: Home Furnishings is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing floor inventory by $656,000 and increasing its debt to suppliers by 85 percent of that amount.
|
Excess capacity adjustments
: osato chemicals inc had sales of $1,790,000 last year on fixed assets of $395,000. given that osato's fixed assets were being used at only 92% of capacity, then the firms fixed asset turnover ratio was____? how much sales could osato chemicals inc. h..
|
Federal income taxation of corporations and shareholder
: The stock of X is owned equally by two shareholders: Y (an individual with a stock basis of $100) and A (an individual with stock basis of $40). X uses the accrual method, A and Y use the cash method, and all use the calendar year. Alternatively, X h..
|
What is always placed after a closing quotation mark
: Noah Webster supported himself through sales of his spelling book over 100 million copies ofthe book were sold. What is always placed after a closing quotation mark.
|
Explain the reasons why npv pricing is not commonly used
: Do you believe that market driven pricing can sometimes result in mispricing of risks? Please elaborate. Explain the reasons why NPV pricing is not commonly used, despite its strong theoretical foundations.
|
Net annual savings to firm from implementing lockbox system
: A firm's average accounts receivable (A/R) is $2.0 million and is financed by a bank loan with 12% annual interest. It is considering a regional lockbox system to speed up collections that it believes will reduce A/R by 20 percent. The annual cost of..
|