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Excess capacity adjustments Western Gas & Electric Co . ( WG&E ) currently has $ 6 4 5 , 0 0 0 in total assets

Excess capacity adjustments
Western Gas & Electric Co.(WG&E) currently has $645,000 in total assets and sales of $1,820,000. Half of WG&Es total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% 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.)
WG&E 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.)
$1,895,833
$2,275,000
$1,801,041
$1,516,666
When you consider that WG&Es fixed assets were being underused, its target fixed assets to sales ratio should be
%.(Note: Round your answer to two decimal places.)
When you consider that WG&Es fixed assets were being underused, how much fixed assets must WG&E raise to support its expected sales for next year? (Note: Round your answer to the nearest whole number.)
$44,170
$52,451
$55,212
$66,254

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