Hi can you please solve these questions :) Thank you! Quantitative Problem 1 Mit

Question

Hi can you please solve these questions :) Thank you!

Quantitative Problem 1 Mitchell Manufacturing Company has $1,900,000,000 in sales and $220,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity.

What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar. Do not round intermediate calculations.
$  

What is Mitchell's Target fixed assets/Sales ratio? Round your answer to two decimal places. Do not round intermediate calculations.
%

If Mitchell's sales increase by 55%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Round your answer to the nearest dollar. Do not round intermediate calculations.
$  

Quantitative Problem 2: Beasley Industries' sales are expected to increase from $4 million in 2015 to $5 million in 2016, or by 25%. Its assets totaled $3 million at the end of 2015. Beasley is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2015, current liabilities are $760,000, consisting of $120,000 of accounts payable, $400,000 of notes payable, and $240,000 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. Round your answer to the nearest dollar. Do not round intermediate calculations.
$  

Explanation / Answer

Answer(1)-

Sales = $1,900,000,000; FA = $220,000,000; FA are operated at 75% capacity.

a. Full capacity sales = $1,900,000,000/0.75 = $2,533,333,333.

b. Target FA/S ratio = $220,000,000/$2,533,333,333 = 8.68%.

c. Sales increase 55%; DFA = ?S1 = $1,900,000,000 1.55 = $2,945,000,000

DFA= 0.0868 ($2,945,000,000– $2,533,333,333)=$35,732,667

Answer (2)-

Sales expected in 2013=$5,000,000

After-tax profit margin ($5,000,000*4%)=$200,000

Dividend payments [$200,000*50%]=$100,000

Addition to retained earnings [$200,000 - $100,000]=$100,000

Increase in assets=3+3*25% = 3,750,000

Increase in liabilities=950,000

AFN= 3,750,000-950,000-100,000=$2,700,000

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