1) Three Waters Co currently has $490,000 in total assets and sales of $1,820,000. Half of Three waters total asses come from net fixed assets and the rest are current assets. The firm expects sales to grow by 18% in the next year. According to the AFN equation, the amount of additional assets requiered to support this level of sales is__________.
2) Three Waters was using its fixed assets at only 94% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets?
$1,936,170
$2,032,979
$1,742,553
$1,839,362
3) When you consider that Three Waters fixed assets were being underused, its target fixed assets to sales ratio should be_____________.
4) When you consider that Three Waer's fixed assets were being underused, how much fixed assets must Three Waters raise to support its expected sales for next year?
$29,429
$30,767
$32,105
$26,754