Big Deal is still just coming out of its Covid sales slump, and thus has idle capacity at its plants. In fact, its factories are producing at 80% of their potential. They want to put underutilized potential to work before they expand their PPE any further. How much will they actually need to increase PPE by, then, to meet the proposed 2024 sales target?

 

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STATEMENT OF FINANCIAL POSITION Assets Current Cash Investments (ST) Receivables Inventories Non-current Total Current Total Assets Equity THE BIG DEAL CORPORATION Property, Plant, Equipment Intangibles Liabilities Total Non-current Current Payables Loans (ST) Total Current Non-current Total Liabilities EBT - T E Debt (LT Bonds) Total Non-current Shareholders' Equity Total STATEMENT OF PROFIT AND LOSS Revenues - COGS Gross Profit - Administrative - Depreciation - R&D - Sales and Distribution - Salaries - Total Operating Expenses EBIT (a.k.a. Operating Income) - Interest 2020 350 550 2800 2400 1000 550 4500 800 100 4050 4800 4500 300 300 5100 4800 9150 9300 1500 1350 200 150 1700 1500 2021 6900 6800 6900 6800 8600 8300 550 550 2020 3950 (200) 3750 (200) (150) (250) (350) (2000) (2950) 800 (150) 650 114 536 1000 1000 2021 4000 (550) 3450 (150) (100) (250) (400) (2100) (3000) 450 (120) 330 45 285 STATEMENT OF FINANCIAL POSITION Assets Current Cash Investments (ST) Receivables Inventories Non-current Total Current Total Assets Equity THE BIG DEAL CORPORATION Property, Plant, Equipment Intangibles Liabilities Total Non-current Current Payables Loans (ST) Total Current Non-current Total Liabilities EBT - T E Debt (LT Bonds) Total Non-current Shareholders' Equity Total STATEMENT OF PROFIT AND LOSS Revenues - COGS Gross Profit - Administrative - Depreciation - R&D - Sales and Distribution - Salaries - Total Operating Expenses EBIT (a.k.a. Operating Income) - Interest 2020 350 550 2800 2400 1000 550 4500 800 100 4050 4800 4500 300 300 5100 4800 9150 9300 1500 1350 200 150 1700 1500 2021 6900 6800 6900 6800 8600 8300 550 550 2020 3950 (200) 3750 (200) (150) (250) (350) (2000) (2950) 800 (150) 650 114 536 1000 1000 2021 4000 (550) 3450 (150) (100) (250) (400) (2100) (3000) 450 (120) 330 45 285

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