XYZ has current assets of $680,000, fixed assets $5,400,000 and $240,000 in AP and accruals. They are presently at 90% of capacity. What can sales reach before they need to add fixed assets? I have the answer for this as 5,333,333. I need help with the following:
1. They do not have a need to increase fixed assets this year.
True
False
2. They have a need for external funds (AFN).
True
False