O $10,509.878.12 Question 14 5 pts At a meeting with your CFO you kicked around
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O $10,509.878.12 Question 14 5 pts At a meeting with your CFO you kicked around the idea of the idea of purchasing Leggett Platt Clothing Manufacturing You are interested in the long-term planning, specifically any external funding needed. He let you know about some financial information needed. You are given for fiscal year 2014 gross prIfit of $784,450.14, fixed assets of $3,915,125.94, full capacity sales of $1,515,582.11, and projected sales of $1.988,746.84. The change in fixed assets needed is O $1.100.072.09 5977.841 85 O $1,222,302.32 O $1.344 532 55 O $1.466.76278 5 pts D Question 15Explanation / Answer
Company is operating at 100% capacity based on the question given, so for any growth in sales, company would need to invest in fixed assets.
The growth or change in fixed assets would be proportional to growth in sales.
Growth in sales = ($1,988,746.84/$1,515,582.11) - 1 = 31.22%
There should be proportional growth in assets as well.
New Net fixed assets = $3,915,125.94 * (1 + 31.22%) = $5,137,428.25
Change in net fixed assets = $5,137,428.25 - $3,915,125.94 = $1,222,302.31(Option 3)
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