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Hi, I could really use help. Will rate if correct! 4. Excess capacity adjustments Osato Chemicals Inc. currently has $575,000 in total assets and sales
Hi, I could really use help. Will rate if correct!
4. Excess capacity adjustments Osato Chemicals Inc. currently has $575,000 in total assets and sales of $1,720,000. Half of Osato'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 Osato was using its fixed assets at only 92% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? O $1,963,043 $2,150,000 O $1,869,565 O $2,243,478 When you consider that Osato's fixed assets were being underused, its target fixed assets to sales ratio should be l 15.378% 13.840% 12.302% 13.071% ected sales for next year? When you consider that Osato's fixed assets were being underused, how much fixed assets must Osato raise to su $28,618 o $32,706 $27,255 $31,343 4. Excess capacity adjustments Osato Chemicals Inc. currently has $575,000 in total assets and sales of $1,720,000. Half of Osato'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 Osato was using its fixed assets at only 92% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? O $1,963,043 $2,150,000 O $1,869,565 O $2,243,478 When you consider that Osato's fixed assets were being underused, its target fixed assets to sales ratio should be l 15.378% 13.840% 12.302% 13.071% ected sales for next year? When you consider that Osato's fixed assets were being underused, how much fixed assets must Osato raise to su $28,618 o $32,706 $27,255 $31,343Step by Step Solution
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