... sales = $5,000,000,000/0.90 = $5,555,555,556 Answers and Solutions: 17 - b Target FA/S ratio = $1,700,000,000/$5,555,555,556 = 30.6% Answers and Solutions: 17 - c Sales increase 12%; ∆FA = ? S1 = ... 0.58S1 $2,068,965.52 = S1 Answers and Solutions: 17 - Sales can increase by $2,068,965.52 - $2,000,000 = $68,965.52 without additional funds being needed Answers and Solutions: 17 - 17-10 Sales = ... 1.73, and the latest change would cause a further reduction to ($31,500 - $4,654)/ $18,171 = 1.48 Creditors might not tolerate such a reduction in Answers and Solutions: 17 - 14 liquidity and might...