The financial statements for DTS $,$ ?Den Store Taber $($ from assignment # $2),$ ?are at the end of this assignment. Use them to answer the following questions regarding the Percent of Sales Model. The marketing team has big plans; in fact they've just made a presentation involving a sales increase of $40\%$ ?relative to the $2022$ ?sales year. Assume that interest on all debt is uniformly $14\%,$ ?and that Den Store is now considered to be a large corporation $($ which does not qualify for small business tax breaks $)$ ?and pays taxes at a $28\%$ ?combined federal and provincial rate.

Regarding Revenues....

$1$ a $.$ ?What will projected revenues be $?$

$1$ b $.$ ?Challenge Question: Which expenses on the P&L Statement will increase by $40\%,$ ?and which will not?

Regarding Asset Purchases.... $($ For all of Q $2,$ ?you may round answers to the nearest $ $.)$

$2$ a $.$ ?Assuming assets vary directly with sales, by how much will assets need to be increased to support the projected sales increase?

$2$ b $.$ ?However, Den Store Taber isn't fully utilizing its PPE. It has a lot of idle capacity $-$ PPE is functioning only at $75\%$ ?capacity. This unused capacity will be put to work first, and only then will more PPE assets be purchased. Given this, what will PPE increase by to meet the proposed sales increase?

$2$ c $.$ ?Now reconsider your answer to Q $1$ a $.$ ?Given that management at DTS intends to more fully utilize their PPE, what do total assets need to increase by in order to achieve the increase in sales?