Western Gas & Electric Co. (WG&E) had sales of $1,790,000 last year on fixed assets of $380,000. Given that WG&E’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset turnover ratio was     .   How much sales could Western Gas & Electric Co. (WG&E) have supported with its current level of fixed assets? $1,978,422   $2,072,632   $1,884,211   $1,507,369     When you consider that WG&E’s fixed assets were being underused, what should be the firm’s target fixed assets to sales ratio? 21.18%   22.19%   20.17%   16.14%     Suppose WG&E is forecasting sales growth of 20% for this year. If existing and new fixed assets are used at 100% capacity, the firm’s expected fixed assets turnover ratio for this year is    ?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Western Gas & Electric Co. (WG&E) had sales of $1,790,000 last year on fixed assets of $380,000. Given that WG&E’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset turnover ratio was     .
 
How much sales could Western Gas & Electric Co. (WG&E) have supported with its current level of fixed assets?
$1,978,422
 
$2,072,632
 
$1,884,211
 
$1,507,369
 
 
When you consider that WG&E’s fixed assets were being underused, what should be the firm’s target fixed assets to sales ratio?
21.18%
 
22.19%
 
20.17%
 
16.14%
 
 
Suppose WG&E is forecasting sales growth of 20% for this year. If existing and new fixed assets are used at 100% capacity, the firm’s expected fixed assets turnover ratio for this year is    ?
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