1. Reporting Sales:Finer Industries has $5 billion in sales and $1.7 billion in fixed assets.Currently, the companyâs fixed assets are operating at 90% of capacity.a. What level of sales could Finer Industries have obtained if it had been operating at full capacity?b. What is Finerâs Target fixed assets/Sales ratio?c. If Finerâs sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?Please show all work and calculations.2. Additional Funds Needed:Jackson Co. has the following balance sheet as of December 31, 2001.Assets:Claims:Current assets$ 600,000Accounts payable$ 100,000Fixes assets400,000Accruals100,000Notes payable100,000Long-term debt300,000___________Total common equity400,000Total assets$1,000,000Total claims$1,000,000In 2001, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000. The company anticipates its sales will increase 20 percent in 2002 and its dividend payout will remain at 60 percent. Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with the increase in sales.Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long term debt. Given its forecast, how much long-term debt will the company have to issue in 2002?Please show computation.