Quantitative Problem 1: Besley Industries sales are expected to increase from million in 2019 to $5 million in 2020, or by 25. sets totaled 55 million at the end of 2019. Beasley is a full capacity, so is assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $780,000, consisting of $120,000 of accounts payable, $500,000 of notes payable, and $160,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and its dividend payout ratio is 50%. Using the AFN equation, forecast the additional funds Beasley will need for the coming year. Do not round intermediate calculations. Round your answer to the nearest dolar. $ The AFN equation assumes that ratios remain constant. However, forms are not always operating at tul capacity so adjustments need to be made to the existing asset forecast. Excess capacity adjustments are changes made to the existing asset forecast because the firm is not operating at all capacity. For example, a tem may not be at full capacity with respect to its fixed assets. First, the firm's management must find out the firm's l capacity sales as follows: Pull capacity als Petely which are Next, management would calculate the firm's target fixed asset ratio as follows: Tuil releet - Al finlande drapy Finally, management would use the target fixed assets ratio with the projected sales to calculate the flem's required level of fixed assets as follows: Required level of fixed asset (Target fixed assets/Sales) Projected sale Quantitative Problem 21 Mitchell Manufacturing Company has 1.100,000,000 in sales and $200,000,000 in fixed assets. Currently, the company's fixed assets are operating at home of capacity What evel of sales could Mitchell have detained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Hound your answer to two decimal places. Il Michells sales increase by 38%, how large of an increase in foed assets will the company need to meet its Tarpet ned assets/Solis rate? Do not round termediate calculations. Round your answer to the Check My Work remaining) ey