Hello, I have two I am hoping you can assist with.

1. Reporting Sales:

Finer Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the companys fixed assets are operating at 90% of capacity.

a. What level of sales could Finer Industries have obtained if it had been operating at full capacity?

b. What is Finers Target fixed assets/Sales ratio?

c. If Finers sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?

Please show all work and calculations.

2.Additional Funds Needed:

Jackson Co. has the following balance sheet as of December 31, 2001.

Assets:			Claims:
Current assets	$ 600,000		Accounts payable	$ 100,000
Fixes assets	400,000		Accruals	100,000
			Notes payable	100,000
			Long-term debt	300,000
	___________		Total common equity	400,000
Total assets	$1,000,000		Total claims	$1,000,000

In 2001, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000. The company anticipates its sales will increase 20 percent in 2002 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with the increase in sales.

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long term debt. Given its forecast, how much long-term debt will the company have to issue in 2002?

Please show computation.