Western Gas & Electric Co. (WGSE) currently has $540,000 in total assets and sales of...
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Western Gas & Electric Co. (WGSE) currently has $540,000 in total assets and sales of $1,550,000. Half of WGAE'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 $ WG&E was using its fixed assets at only 95% of capacity last year. How much soles could the firm have supported last year with its current level of fixed assets? O $1,631,579 O $1,876,316 O $1,713,158 O $1,794,737 When you consider that WG8E's fixed assets were being underused, its target fixed assets to sales ratio should be 96. When you consider that WGAE's fixed assets were being underused, how much fixed assets must WG&E raise to support its expected sales for next year? $40,520 $35,235 $36,997 $38,759
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