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3. Excess capacity adjustments Osato Chemicals Inc. currently has $575,000 in total assets and sales of $1,720,000. Half of Osato's total assets come from net
3. Excess capacity adjustments Osato Chemicals Inc. currently has $575,000 in total assets and sales of $1,720,000. Half of Osato's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 20 % in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ Osato was using its fixed assets at only 92% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? $1,589,130 $2,056,522 $1,869,565 O $1,776,087 When you consider that Osato's fixed assets were being underused, its target fixed assets to sales ratio should be . When you consider that Osato's fixed assets were being underused, how much fixed assets must Osato raise to support its expected sales for next ear? $32,890 $28,405 $29,900 $25,415
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