Excess capacity adjustments

Newtown Propane currently has $$490,000$ in total assets and sales of $$1,790,000.$ Half of Newtown's total assets come from net fixed assets, and the

rest are current assets. The firm expects sales to grow by $19\%$ 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.$)$

Newtown was using its fixed assets at only $96\%$ 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.$)$

$$2,144,270$

$$1,678,125$

$$2,051,041$

$$1,864,583$

When you consider that Newtown's fixed assets were being underused, its target fixed assets to sales ratio should be

your answer to two decimal places.$)$

When you consider that Newtown's fixed assets were being underused, how much fixed assets must Newtown raise to support its expected sales for

next year? $($Note: Round your answer to the nearest whole number.$)$

$$40,121$

$$34,888$

$$38,377$

$$31,399$