Handorf-Zhu Inc. generated $850 million in sales last year, but only utilized 60% of its $425 million in fixed assets. The corporation may expand sales by a maximum of 17.65% before needing to increase its fixed assets.
An asset is any resource that a company or other economic organization owns or has control over. It is everything that has the potential to provide gains in terms of the economy. The ownership value that can be turned into cash is represented by assets. The monetary worth of the assets that a company owns is shown on its balance sheet. It includes money and other valuables that belong to an individual or a company. The two main categories of assets are tangible assets and intangible assets. There are numerous subclasses of tangible assets, including current assets and fixed assets.
Cash, inventory, and accounts receivable are examples of current assets. Fixed assets include real estate, buildings, and machinery. Non-physical resources and rights are examples of intangible assets that provide value to the company.
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