Western Gas & Electric Co. (WG&E) currently has $645,000 in total assets and sales of $1,720,000. Half of WG&E's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 18% 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 93% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets?

$1,572,043

$2,126,881

$1,849,462

$1,756,989

When you consider that WG&E's fixed assets were being underused, its target fixed assets to sales ratio should be %.

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

$29,841

$31,412

$36,124

$26,700