Three Waters Co. currently has $575,000 in total assets and sales of $1,400,000. Half of Three Waterss total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 20% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $?

Three Waters 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?

$1,677,083

$1,312,500

$1,458,333

$1,239,583

When you consider that Three Waterss fixed assets were being underused, its target fixed assets to sales ratio should be %?

When you consider that Three Waterss fixed assets were being underused, how much fixed assets must Three Waters raise to support its expected sales for next year?

$39,330

$43,700

$50,255

$37,145