Western Gas & Electric Co. (WG&E) currently has $575,000 in total assets and sales of $1,550,000. Half of WG&Es total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 21% 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 92% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets?

$1,853,261

$1,600,544

$1,684,783

$1,432,066

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?

$35,800

$27,663

$30,918

$32,545