Both Quantitative Problems 1 and 2

Quantitative Problem 1: Beaslity Industries' soles are expected to increase from $4 million in 2019 to $5 million in 2020 , or by 25%. Its assets totaled $2 million at the end of 2019. Beasley is at full copacty, so its assets must grow in proportion to projected sales. At the end of 2019 , current liablities are $730,000, consisting of $160,000 of accounts payable, $500,000 of notes payable, and $70,000 of accrued liabilities, Its profit margin is forecasted to be 4%, and its dividend payout ratio is 50%. Using the AFN equation, forecast the additional funds Beasiey will need for the coming year. Do not round intermediate calculations. Round your answer to the nearest dollar. \$ The AFN equation assumes that ratios remain constant. However, firms are not always operating at full capacity so adfustments need to be made to the existing asset forecast. Excess capscity adjustments are changes mode to the existing asset forecast because the firm is not operating at fulf capacity. For example, a firm may not be at full capacity with respect to its foed assets. First, the firm's management must find out the firm's full capacity sales as follows: Fullcapacitysales=PecratsepofrapacityActealmiles Next, management would calculate the firm's target fixed assets ratio as follows: Finally, management would use the target fixed assets ratio with the projected sales to caleulate the firm's required level of fixed assets as follows: Requiredleveloffixedassets=(Targetfixedassets/Sales)Projectedsales Quantitative Problem 2: Mitcheli Manufacturing Company has $1,200,000,000 in sales and $360,000,000 in fixed assets, Currently, the companys fixed assets are operating at 70% of capacity. a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollae. 3 b. What is Mitchell's Target fixed assets/5ales ratio? Do not round intermediate calculations. Round your answer to two decimal places. c. If Mitchell's sales increase by 50%, how large of an increase in fixed assets will the company need to meet its Tarpet fixed assets/sales ratio? Do not reund intermediate calculations. Round your answer to the nearest doliaf. 5