Excess capacity adjustments Newtown Propane currently has $540,000 in total assets and sales of $1,720,000. Half of Newt

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Excess capacity adjustments
Newtown Propane currently has $540,000 in total assets and salesof $1,720,000. Half of Newtown’s total assets come from net fixedassets, and the rest are current assets. The firm expects sales togrow by 22% in the next year. According to the AFN equation, theamount of additional assets required to support this level of salesis [$_____________]. (Note: Round youranswer to the nearest whole number.)
Newtown was using its fixed assets at only 95% of capacity lastyear. How much sales could the firm have supported last year withits current level of fixed assets? (Note: Round your answer to thenearest whole number.)
a. $1,810,526
b. $1,720,000
c. $1,629,473
d. $2,172,631
When you consider that Newtown’s fixed assets were beingunderused, its target fixed assets to sales ratio should be [__________%] (Note: Round your answer to two decimalplaces.)
When you consider that Newtown’s fixed assets were beingunderused, how much fixed assets must Newtown raise to support itsexpected sales for next year? (Note: Round your answer to thenearest whole number.)
a. $38,637
b. $42,930
c. $51,516
d. $40,784