Girard Inc. had sales of $1,120,000 last year on fixed assets of $270,000. However, Girard's fixed assets were being used at only 90% of capacity. What is Girard's current fixed assets turnover ratio?
3.87x, 4.06x, 4.15, 3.69x or 4.24x (4.15x)
How much sales could Girard have supported given its current level of fixed assets?
Girard is forecasting sales growth of 20% for this year. If existing and new fixed assets are utilized at 100% capacity, what is the firm's expected fixed assets turnover ratio for this year?
4.61x, 3.99x, 3.89x, 4.40x, 4.71x (3.89x)