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e Nevre your Face MILIVORUM VIY Wine Clem. He wore rower AFN equals zero. Quantitative Problem 1: Beasley Industries' sales are expected to increase from

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e Nevre your Face MILIVORUM VIY Wine Clem. He wore rower AFN equals zero. Quantitative Problem 1: Beasley Industries' sales are expected to increase from $4 million in 2019 to $5 million in 2020, or by 25W. Its assets totaled $3 million at the end of 2019. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $730,000, consisting of $150,000 of accounts payable, $450,000 of notes payable, and $130,000 of accrued Habilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 70%. Using the AFN equation, forecast the additional funds Beasley 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 adjustments need to be made to the existing asset forecast. Excess capacity adjustments are changes made to the existing asset forecast because the firm is not operating at full capacity. For example, a fimm may not be at full capacity with respect to its fixed ants. First, the firm's mana pement must find out the firm's full capacity sales as follows: Full capacity sales Price of capit which pred Next management would calculate the firm's target fixed assets ratio as follows: To Actuate Policy Finally, management would use the taroet fixed assets ratio with the projected sales to calculate the firm's required level of fixed assets as follows: Required level of ticed assets (Target fixed assets/Sales) * Projected sales Quantitative Problem 21 Mitchell Manufacturing Company has $1,400,000,000 in sales and $220.000.000 in fixed assets. Currently, the company stored assets are operating at 75% of capacity a. What level of sales could Mitchell have obtained if it had been operating at Pull capacity? Do not round Intermediate calculations. Round your er to the nearest dollar SA 10:17 PM

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