Quantitative Problem 1: Beasley Industries' sales are expected to increase from $5 million in 2017 to $5 million in 2018 , or by 20%. Its assets totaled $3 million at the end of 2017 . Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2017 , current liabilities are. $800,000, consisting of $140,000 of accounts payable, $400,000 of notes payable, and $260,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 70%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year, Do not round intermediate calculations, Enter your answer in dollars. For example, an answer of $2 million should be entered as 2,000,000. Round your answer to the nearest doilar. s. The AFN equation assumes that ratios remain constant. However, firms are not always operating at full capacity so adjustments need to be made to the existing asset forecast. Excess capacity adfustments are changes made to the existing asset forecast because the firm is not operating at full capscity. For example, a firm may not be at full capacity with respect to its fixed assets. First, the firm's management must find out the firm's full capacity sales as follows: Fullcapacitysales=NerinetageofexpacityMadealalesatwhisfleednasesvereeprialed Next, management would calcutate the firm's target fixed assets ratio as follows: Finaly, management would use the target fixed assets ratio with the projected sales to calculate the firm's required level of fixed assets as follows: Required level of fixed assets = (Target fixed assets / Sales) (Projected sales) Quantitative Problem 2: Macheil Manufacturing Company has $1,000,000,000 in sales and $330,000,000 in fored assets. Currently, the company's fixed assets are operating at 80% of capscity. a. What level of sales could Mitcheli have obtained if it had been operating at full capacity? Do not round intermedute calculavons, Round your answer to the nearest doltar 5 b. What is Miccheirs Target fined assets/Sales ratia? Do not round intermediate calculations. Round veur answer to two decimal placts. \% C. If Mitchelis sales increase 4046 , how large of an increase in fixed assets wil the company need to meet its target fued assets/Sales ratio? Do not round intermediate colculations. flound your answer to the nearest dollar. $