plase answer both parts
SALES INCREASE Paladin Furnishings generated $4 million in sales during 2016, and its year-end total assets were $3.2 million. Also, at year end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.80 for every $1.00 increase in sales. Paladin's profit margin is 7%, and its retention ratio is 50%. How large of a sales increase can the company achieve without having to raise funds externally write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round Intermediate calculations. Round your answer to the nearest cent. EXCESS CAPACITY Earleton Manufacturing Company has $2 billion in sales and $700,000,000 in fixed assets. Currently, the company's foxed assets are operating at 80% of capacity a. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. b. What is Earleton's target fixed assets/sales ratio? Do not round intermediate cakulations, Round your answer to two decimal places. % C. If Earleton's sales increase 35%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round Intermediate calculations. Round your answer to the nearest whole number, SALES INCREASE Paladin Furnishings generated $4 million in sales during 2016, and its year-end total assets were $3.2 million. Also, at year end 2016, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by $0.80 for every $1.00 increase in sales. Paladin's profit margin is 7%, and its retention ratio is 50%. How large of a sales increase can the company achieve without having to raise funds externally write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round Intermediate calculations. Round your answer to the nearest cent. EXCESS CAPACITY Earleton Manufacturing Company has $2 billion in sales and $700,000,000 in fixed assets. Currently, the company's foxed assets are operating at 80% of capacity a. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. b. What is Earleton's target fixed assets/sales ratio? Do not round intermediate cakulations, Round your answer to two decimal places. % C. If Earleton's sales increase 35%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round Intermediate calculations. Round your answer to the nearest whole number
