In this problem, you are required to find a listed firm to perform the following financial forecasting analysis.

(a) Choose a publicly traded company in the Information Technology sector: Communications Equipment, Electronic Equipment, Instruments & Components, IT Services, Semiconductors & Semiconductor Equipment, Software, and Technology Hardware, and Storage. Every student is expected to use a different firm.

(b) The selected company has significant amount of short-term and long-term debts on its balance sheet for the iteration purpose.

(1) Find the most recent five years historical financial statements (2017~2021) of your selected company (Note: for some companies, the most recent five fiscal years historical financial data is from 2018 ~ 2022) (2) Use TREND function in Excel to perform linear trend extrapolation for the sales of the company from 2022 to 2026 (or 2023~2027).

(3) Perform regression analysis to analyze the relation of sales and inventory of the company. Interpret the regression results: coefficient, t-statistic for the coefficient, R square, R square adjusted, and F statistic.

(4) Use the percent of sales method to forecast the next year 2022 (or 2023) financial statements (Income Statement, Balance Sheet) of the company.

(5) (Iteration calculations) Use iteration calculations in Excel to eliminate DFN in the pro forma balance sheet if DFN is not equal to 0. Assumption: If DFN is a deficit, we assume that the deficit amount is raised by issuing new common shares. If DFN is a surplus, we assume that the surplus is used to repurchase stocks. You should set a dummy variable (0, 1) in Excel to control (disable/enable) the iterative calculations.