1. Monk Consortium Corp. (Monk-Con) currently has $645,000 in total assets and sales of $1,720,000. Half of Monk-Cons total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 21% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $_____________

2. .Monk-Con was using its fixed assets at only 93% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets?

$1,941,935

$1,756,989

$1,572,043

$1,849,462

3. When you consider that Monk-Cons fixed assets were being underused, its target fixed assets to sales ratio should be ______________%.

4. When you consider that Monk-Cons fixed assets were being underused, how much fixed assets must Monk-Con raise to support its expected sales for next year?

$38,389

$42,429

$34,348

$40,409