Calculate the Projected Fixed Assets Needed Given the Following Information

question 222

Multiple Choice

Calculate the projected fixed assets needed given the following information: current sales = $275,000; current sales capacity = 75%; current fixed assets = $40,000; projected future sales = $475,000.

• A) $11,818
• B) $51,818
• C) $12,818
• D) $52,818
• E) $60,818

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Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership interest in the company.

Cash Payments Journal

A financial journal that records all cash payments made by a business, including expenses, purchases, and debt payments.

Sales Discounts

Reductions granted by sellers to buyers from the listed price as an incentive for early payment.

Accounts Payable

Liabilities or amounts owed by a company to its creditors for goods and services that have been delivered but not yet paid for.