Financial Statements Volkswagen Chattanooga TN USA Facility (hypothetical) Balance Sheet (in millions) Assets: Current assets: Inventory $ 40 Other current assets $ 60 Total current assets $100 Long term assets: Equipment $200 less Accumulated depreciation $ 50 Net equipment assets $150 Other long-term assets $300 Total long-term assets $450 Total Assets $550 Liabilities and Equity: Current liabilities: Accrued Liabilities $ 25 Other current liabilities $ 30 Total current liabilities $ 55 Debt $145 Stockholders equity $350 Total liabilities and equity $550 Income Statement (in millions) Sales $800 Cost of goods sold $400 Gross profit $400 Operating expenses $250 Operating profit $150 Interest expense $ 50 Pretax profit $100 Taxes $ 30 Net income $ 70

Volkswagen is considering expansion of its manufacturing facility in Chattanooga Tennessee (USA). The current Balance Sheet and Income Statement for Volkswagen is provided. For each statement, identify which components will be impacted and qualitatively how once the project is complete. You do not need to provide new numbers. You should assume that the expansion will be profitable, the earnings will be retained by the company, and will be financed through additional debt.