Question 5 5- Assuming that the entire debt taken will be invested in assets (half on inventory and half on land). The BOD believes this step will increase sales by $20,000 next year which they think certainly justifies the decision to increase inventory. Mr. David argues that this sales increase is not enough to balance the drop in firm's total asset utilization. a- what is the current total asset utilization? Solution: b- What is the new total assets utilization? Solution: c-Do you agree with Mr. David? Or with the BOD? Solution