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5. The Big One-Volt Company makes really large one-volt batteries. Its highly simplified financial statements for 2019 and 2020 appear at the end of this

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5. The Big One-Volt Company makes really large one-volt batteries. Its highly simplified financial statements for 2019 and 2020 appear at the end of this assignment. The Big Volt guys are putting to use the Percentage of Sales Model, and are wondering what their various accounts would look like in 2023 if they manage to increase sales by 45% over 2020's sales.... a. What is the sales revenue target for 2023? b. If all assets vary in direct proportion to sales, by what amount must they be increased to support the 2023 sales forecast? c. As it turns out, PPE already nearly doubled from 2019 to 2020, in anticipation of future production increases. At the current moment PPE is grossly under-utilized; the plant is ting at only 70% of its capacity. Given this new information, how much PPE will need to be purchased to meet the 2023 sales target? d. Given your answers to parts "b" and "c," how much will total assets need to increase to support the planned expansion in sales? e. What percent of Big One-Volt's current financing is debt? (Round your answer to the nearest percent.) f. No matter what your answer was to "part d," assume that total assets are to increase by exactly $1,600. If the executive team at One-Volt wants to maintain the current debt ratio, how must the asset expansion be financed? Put another way, how much new debt must be issued and how much new equity must be issued? g. What were dividends for 2020? h If the dividend policy is changed so that the payout ratio for 2020 is 50%, how will the asset expansion (of $1,600) be financed? 5. The Big One-Volt Company makes really large one-volt batteries. Its highly simplified financial statements for 2019 and 2020 appear at the end of this assignment. The Big Volt guys are putting to use the Percentage of Sales Model, and are wondering what their various accounts would look like in 2023 if they manage to increase sales by 45% over 2020's sales.... a. What is the sales revenue target for 2023? b. If all assets vary in direct proportion to sales, by what amount must they be increased to support the 2023 sales forecast? c. As it turns out, PPE already nearly doubled from 2019 to 2020, in anticipation of future production increases. At the current moment PPE is grossly under-utilized; the plant is ting at only 70% of its capacity. Given this new information, how much PPE will need to be purchased to meet the 2023 sales target? d. Given your answers to parts "b" and "c," how much will total assets need to increase to support the planned expansion in sales? e. What percent of Big One-Volt's current financing is debt? (Round your answer to the nearest percent.) f. No matter what your answer was to "part d," assume that total assets are to increase by exactly $1,600. If the executive team at One-Volt wants to maintain the current debt ratio, how must the asset expansion be financed? Put another way, how much new debt must be issued and how much new equity must be issued? g. What were dividends for 2020? h If the dividend policy is changed so that the payout ratio for 2020 is 50%, how will the asset expansion (of $1,600) be financed

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