Asset liabilities & equity Cash - $ 100 Account payable - $ 300 Account receivable - $ 100 Note payable - $ 100 Inventory - $ 200 Total current liabilities - $ 400 Total current asset - $ 400 Long term debt - $ 110 Net fixed assets -$ 600 Common stock - $ 400 Retaining earning - $ 90 Total - $ 1000 Total - $ 1000 1)If total assets are projected to increase by $ 500, what is the maximum amount of new debt the corporation borrows? Assume the corporation borrows a maximum of 50% of total assets. 2)If plow back ratio is 0.9, grow rate of sale is 20% , the profit margin is 0.50, and total sales are $ 10000, then how do retained earnings change? 3).Porta Star company has annual sale of $ 40000000 and keeps average inventory of $ 10000000. On average the firm has accounts receivable of $ 8000000. The firm buys all material on credits and its trade credit terms are net 30 days. It pays on time. The firms managers are searching for ways to shorten the cash conversion cycle. If sale can be maintained at existing levels but inventory can be lowered by $ 2000000 and accounts receivable lowered by $ 1000000, what will be the net change in the cash conversion cycle ? Use 360 day year.