4. Lothbrok Industries expects to reach a sales level of $324 million for next year. The company expects to continue paying the same dividend per share for the next several years. (a) Calculate the additional financing, if any, the firm will need over the next year in order to achieve sales of $324 million. Assume all assets vary with sales, all ratios remain constant and that any debt or borrowing is non-spontaneous financing. (4 marks) Profit Margin= Retention Ratio = AFN = 2 (b) Suppose that the firm's management feels that the average collection period on its additional sales-that is, sales over $270 million will be 38 days, instead of the current level. By what amount will the increase in the average collection period increase the financing needed by the firm over the next year? (3 marks) Current ACP Increase in financing need = (b) Suppose that the firm's management feels that the average collection period on its additional sales-that is, sales over $270 million will be 38 days, instead of the current level. By what amount will the increase in the average collection period increase the financing needed by the firm over the next year? (3 marks) Current ACP = Increase in financing need = (c) Independent of (a) and (b) above, assume that Lothbrok's fixed assets are only used at 75% of capacity. By what percentage could 2021 sales increase over 2020 sales without the need for an increase in fixed assets? (2 marks) (c) Independent of (a) and (b) above, assume that Lothbrok's fixed assets are only used at 75% of capacity. By what percentage could 2021 sales increase over 2020 sales without the need for an increase in fixed assets? (2 marks) (c) Independent of (a) and (b) above, assume that Lothbrok's fixed assets are only used at 75% of capacity. By what percentage could 2021 sales increase over 2020 sales without the need for an increase in fixed assets? (2 marks) 4. Lothbrok Industries expects to reach a sales level of $324 million for next year. The company expects to continue paying the same dividend per share for the next several years. (a) Calculate the additional financing, if any, the firm will need over the next year in order to achieve sales of $324 million. Assume all assets vary with sales, all ratios remain constant and that any debt or borrowing is non-spontaneous financing. (4 marks) Profit Margin= Retention Ratio = AFN = 2 (b) Suppose that the firm's management feels that the average collection period on its additional sales-that is, sales over $270 million will be 38 days, instead of the current level. By what amount will the increase in the average collection period increase the financing needed by the firm over the next year? (3 marks) Current ACP Increase in financing need = (b) Suppose that the firm's management feels that the average collection period on its additional sales-that is, sales over $270 million will be 38 days, instead of the current level. By what amount will the increase in the average collection period increase the financing needed by the firm over the next year? (3 marks) Current ACP = Increase in financing need = (c) Independent of (a) and (b) above, assume that Lothbrok's fixed assets are only used at 75% of capacity. By what percentage could 2021 sales increase over 2020 sales without the need for an increase in fixed assets? (2 marks) (c) Independent of (a) and (b) above, assume that Lothbrok's fixed assets are only used at 75% of capacity. By what percentage could 2021 sales increase over 2020 sales without the need for an increase in fixed assets? (2 marks) (c) Independent of (a) and (b) above, assume that Lothbrok's fixed assets are only used at 75% of capacity. By what percentage could 2021 sales increase over 2020 sales without the need for an increase in fixed assets? (2 marks)