How much additional financing can be obtained for fixed -asset expansion if Anderson is able to increase its inventory turnover ration to the industry average through tighter control of its raw materials, work-in-process, and finished goods inventories? ( assume that the cost of sales remains constant at $60.75 million.)

TABLE 160.1 Anderson Furniture Company's Financi urniture Company's Financial Data (in Thousands of Dollars) Industry Average Balance Sheet as of December 31, 2015 5.0% 21.6 6.5% 26.3 35.5 68.3% 31.7 100.0% 33.4 60.0% 40.0 100.0% 5.3% 6.6 11.8% 31.6 56.6 100.0% 7.0% 10.0 17.0% 28.0 55.0 100.0% Assets $ 3,690 Cash 15,000 Receivables, net 20,250 Inventories $38,940 Total current assets 18,060 Net fixed assets $57,000 Total assets Liabilities and stockholders' equity $ 3,000 Accounts payable 3,750 Notes payable (8%) $ 6,750 Total current liabilities 18,000 Long-term debt (10%) 32,250 Stockholders' equity Total liabilities and equity $57,000 Income Statement for the Year Ended December 31, 2015 Net sales (all on credit) $75,000 Cost of sales 60,750 60,750 Gross profit $14,250 0 Selling and administrative expenses 7.500 Earnings before interest and taxes $ 6,750 on Interest expense 2,100 Earnings before taxes $ 4,650 Income taxes (45.16%) 2,100 Earnings after taxes $ 2,550 100.0% 81.0 19.0 10.0 9.0 2.8 6.2 3.4% Anderson 5.76 2.77 73.00 Significant ratios Current Quick Average collection period (days) Inventory turnover (Cost of sales/inventory) Sales to total assets Debt to equity Times interest earned Earnings after tax/sales Earnings after tax/equity Industry Average 3.50 1.60 58.803 3.50 3.00 1.60 1.30 0.80 3.20 3.40% 7.90% 0.90 4.70 2.40% 7.90%