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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 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?
BIG ONE-VOLT CORPORATION 1 STATEMENT OF COMPREHENSIVE INCOME Revenues - COGS 2 Gross Profit - Operating Expenses 3 EBIT - Interest 4 EBT - Taxes 5 E (i.e., earnings, net income, profit) 2019 2020 6000 9000 (1800) (2700) 4200 6300 (1680) (2520) 2520 3780 (325) (1760) 2195 2020 549 505 1646 1515 2019 2020 2980 2230 22000 39550 24980 41780 STATEMENT OF FINANCIAL POSITION Assets Current 6 Non-current ? Total Assets Liabilities Current Non-current Total Liabilities Equity Shareholder capitalization Retained Earnings 8 Total Equity 1750 1750 1500 15850 3250 17600 20578 23120 1152 1060 21730 24180Step by Step Solution
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