Question
Osato Chemicals Inc. currently has $575,000 in total assets and sales of $1,400,000. Half of Osatos total assets come from net fixed assets, and the
Osato Chemicals Inc. currently has $575,000 in total assets and sales of $1,400,000. Half of Osatos total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 21% 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.)
Osato 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.)
$1,677,083
$1,385,416
$1,458,333
$1,531,250
When you consider that Osatos 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 Osatos fixed assets were being underused, how much fixed assets must Osato raise to support its expected sales for next year? (Note: Round your answer to the nearest whole number.)
$44,137
$53,429
$46,460
$48,783
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started