Three waters fixed assets were being underused

Assignment Help Financial Management

Reference no: EM131983985

1) Three Waters Co currently has $490,000 in total assets and sales of $1,820,000. Half of Three waters total asses 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 requiered to support this level of sales is__________.

2) Three Waters was using its fixed assets at only 94% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets?

$1,936,170

$2,032,979

$1,742,553

$1,839,362

3) When you consider that Three Waters fixed assets were being underused, its target fixed assets to sales ratio should be_____________.

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

$29,429

$30,767

$32,105

$26,754

Reference no: EM131983985

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