3. Excess capacity adjustments Water and Power Co. (W&P) currently has $490,000 in total assets and sales of $1,400,000. Half of W&P's 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 W&P was using its fixed assets at only 96% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? O $1,458,333 $1,604,166 O $1,677,083 $1,531,250 When you consider that W&P's fixed assets were being underused, its target fixed assets to sales ratio should be When you consider that W&P's fixed assets were being underused, how much fixed assets must W&P raise to support its expected sales for next year? $39,592 $45,531 O $41,572 $43,551 3. Excess capacity adjustments Water and Power Co. (W&P) currently has $490,000 in total assets and sales of $1,400,000. Half of W&P's 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 W&P was using its fixed assets at only 96% of capacity last year. How m current level of fixed assets? $92,610 Juld the firm have supported last year with its $102,900 $108,045 O $1,458,333 $97,755 $1,604,166 o $1,677,083 o $1,531,250