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5. Excess capacity adjustments Water and Power Co. (W&P) currently has $490,000 in total assets and sales of $1,820,000. Half of W&P's total assets come
5. Excess capacity adjustments Water and Power Co. (W&P) currently has $490,000 in total assets and sales of $1,820,000. 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 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ (Note: Round your answer to the nearest whole number.) W&P 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? (Note: Round your answer to the nearest whole number.) O $2,323,404 O $1,936,170 O $1,645,745 O $2,032,979 When you consider that W&P's fixed assets were being underused, its target fixed assets to sales ratio should be answer to two decimal places.) %. (Note: Round your 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 Note: Round your answer to the nearest whole number.) O $1,645,745 0 $2,032,979 When you consider that W&P's fixed assets were being underused, its target fixed assets to sales ratio should be answer to two decimal places.) %. (Note: Round your 7- ced 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? (Note: Round your answer to the nearest whole number.) O $30,571 $35,966 537,764 $43,159 Sve & Continue Continue without saving search O
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