AFN equation/ sustainable growth/ excess capacity adjustments please help!!

3. More on the AFN (Additional Funds Needed) equation Green Caterpillar Garden Supplies inc. reported sales of $720,000 at the end of last year, but this yeat, sales are expected to grow by 8%. Green Caterpiltar expects to maintain its current profit maroin of 22% and dividend payout ratio of 10%. The following information was taken from Green Caterillar's balance sheet: Based on the AFN equation, the flim's AFN for the current year is A positively signed AfN value reoresents: a surplus of internally penerated funds that can be invested in physical or financial assets of paid out as additional dividends. a shortage of intemally generated funds that must be raised outside the company to finance the company'n forecasted future growth. a point at which the funds penerated within the firm equal the demands for funds to finance the firm's future expected sales requirements. Bacause of its excess funds, Green Coterpillar Garden Supplies Inc. is thinking about raking its dividend pavout ratio to satisfy shareholders. Green Catorpillar could pay out of its eamings to sharehalders without needing to ralse any extemal capital. (Hint: What can Green caterpillar. increase its dividend payout ratio to before the An becomes positive?) 4. Stistainable growth As a firm grows, it must support increases in revenue with new Investments in assets, The self supporting growth model helps a firm assess how rapldy it can grow, while maintaining a balance between its cash outlows (increases in noncash assets) and inflows (funds resulting from increases in liabilities or equity). Consider this case: Green Caterpiltar Garden supplies tnc. has no debt in its capital weructure and kas siso militon in assets. Its sales revenues last year were $75 million with a net incone of $5 mililon. The company distributed $1,60 million as dividends to its shareholders last yeac. What is the firm's self-supoorting, orowth rate? (Note: Do not round voor intermediate calculations.) 1.08% 1.00% 4.0044 Which of the forlowing are assumptions of the self -supporting growth model? check all that aooly. The firms fiabilities and equity must increase at the same rate. The firm's total asset turnover ratio remains constant. The firm sars no dividends. The flim what not issue any new common stock next year. 5. Excess capacity adjustments Western Gas \& Eectric Co. (WG8E) currently has $540,000 in total assets and sales of $2,550,000. Half of WGrE's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to orow bri 2210 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) WGse 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? (Note: Round your answer to the nearest whole number.) $1,684,783 $1,432,066 51,516,305 $2,021,740 When you consider that WG\&E's fixed assets were beno underused, its target fired assets to sales ratio should be \%. (Note: flound your answer to two decimal places.) When you consider that wG\&E's fixed assets were being underused how much fixed asseets must wGse raise to support its expected sales for next yean (Note: Round your answer to the nearest whole numbect) $33,048 $28.092 530,658 $29,743