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 2020s 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 operating 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-Volts current financing is debt? (Round your answer to the nearest percent.)