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

  Component cost of debt for use in the wacc calculation

If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation?

  Determine cause and effect in a true experiment

How does the inclusion of one or more control groups help us determine cause and effect in a true experiment?

  Caselet on analysing the implications to a firm

Task Name: Phase 2 Individual Project Deliverable Length: 4 slides each with 300 words of speaker notes Details: Your meeting is with Toto Matsui, the head of treasury, to discuss the international impact to the firm's capital structure.

  Computing the annual interest rate

Your parents will retire in 15 years.They currently have $400,000, and they think they will need $2,450,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

  Predicting exchange rates

Dorchester Inc. has asked you to aid forecast exchange rates for the 3 potential countries you've selected for your proposal. First plot exchange rates from the past year and try to identify patterns that can be projected into the future.

  Analyze the futures market

Analyze how the futures market has developed in areas.

  Immediate dilution potential for new stock issue

What is the immediate dilution potential for this new stock issue?

  The theory of asset demand suggests that the most important

1 the theory of asset demand suggests that the most important factor affecting the demand for domestic and foreign

  Problem on cash purchase of park place corporation

Boardwalk Corporation desires to expand. It is considering a cash purchase of Park Place Corporation for $2,400,000. Park Place has a $600,000 tax loss.

  The softtec products company is a successful small rapidly

the softtec products company is a successful small rapidly growing closely held corporation. the equity owners are

  Current liabilities of a company are rs 560000 current

current liabilities of a company are rs 560000 current ratio is 52 quick ratio is 21. find the value of

  Integrity of accounting information

1. What is an audit, and how does it add to the integrity of accounting information. 2. Why was the Sarbanes-Oxley legislation passed in 2002, and what are its implications for the accounting profession.

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