How much cash would have generated

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Question 1: Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so its FA/Sales ratio was 50%. However, its fixed assets were used at only 40% 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 $450 million, how much cash (in millions) would it have generated?

Select the correct answer.

a. $131.50

b. $133.25

c. $129.75

d. $138.50

e. $135.00

Reference no: EM132498117

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