Question: Attempts Keep the Highest / 4 3. Excess capacity adjustments Osato Chemicals Inc. currently has $645,000 in total assets and sales of $1,550,000. Half of

 Attempts Keep the Highest / 4 3. Excess capacity adjustments Osato

Attempts Keep the Highest / 4 3. Excess capacity adjustments Osato Chemicals Inc. currently has $645,000 in total assets and sales of $1,550,000. Half of Osato's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 19% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is $ Osato 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? $1,813,830 $1,484,042 0 $1,648,936 0 $1,401,596 When you consider that Osato's fixed assets were being underused, its target fixed assets to sales ratio should be %. When you consider that Osato's fixed assets were being underused, how much fixed assets must Osato raise to support its expected sales for next year? O $38,249 $34,424 O $32,512 O $42,074

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