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Water and Power Co. (W&P) currently has $540,000 in total assets and sales of $1,820,000. Half of W&P's total assets come from net fixed assets,
Water and Power Co. (W&P) currently has $540,000 in total assets and sales of $1,820,000. Half of W&P's 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 $ The company is currently operating at full capacity. (Note: Round your answer to the nearest whole number.) W&P was using its fixed assets at only 93% 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.) O $1,956,989 O $1,565,591 O $2,054,838 O $2,250,537 %. (Note: Round your When you consider that W&P's fixed assets were being underused, its target fixed assets to sales ratio should be answer to two decimal places.) When you consider that W&P's fixed assets were being underused, how much fixed assets must W&P raise to support its expected sales for next year? (Note: Round your answer to the nearest whole number.) O $33,831 O $38,906 O $35,523 O $27,065
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