Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

need a little help!! thank you! Westem Gas B Electric Co. (WGaE) currently has $540,000 in total assets and sales of $1,550,000. Half of wGaE's

need a little help!! thank you! image text in transcribed
Westem Gas B Electric Co. (WGaE) currently has $540,000 in total assets and sales of $1,550,000. Half of wGaE's total assets come from net fored 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.) WGBE was using its fixed assets at only 92% of capacity last year, How much soles could the firm have supported last year with its current levei of fixed assets? (Note: Round your answer to the nearest whole number.) $1,684,783$1,432,066$1,516,305$2,021,740 When you consider that WGaE's fixed assets were being underused, its target fored assets to sales ratio should be 4. (Note: Round your answer to two decimal places.) When you consider that wGeE's foxed assets were being underused, how much fixed assets must wGaE raise to support its expected sales for next year? (Note: Round your answer to the nearest whole number) $33,048 $28,091 $39,658 $29,743

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions