Western Gas & Electric Co. (WG&E) currently has $540,000 in total assets and sales of $1,400,000. Half of WG&Es total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $____

WG&E 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?

$1,750,000

$1,458,333

$1,312,500

$1,166,666

When you consider that WG&Es fixed assets were being underused, its target fixed assets to sales ratio should be

__%.

When you consider that WG&Es fixed assets were being underused, how much fixed assets must WG&E raise to support its expected sales for next year?

$55,469

$41,602

$36,979

$46,224