It is October $2023.$ The Controlling Department of BC S$.$A$.$ has been given the task of determining the company$$s capital requirements over the next two years. Determination of the capital requirements is necessary because of projected dynamic growth in the value of corporate assets $($investment expenditure to construct a new machine manufacturing plant is estimated at some PLN $18$ million over the next two years, at the current balance sheet total of PLN $28\mathrm{.}7$ million$),$ envisaged change of market strategy and the owners$$ expectations as to dividend payout.

The CFO hopes that the lowering of prices on obsolete inventories in the company$$s warehouse will lead to their rapid sale and, consequently, release large cash surpluses. The Management Board of the company would like to find out whether all the tasks can be financed from the profits generated on the company$$s operational activity and from its cash reserves. The projected end$-$of$-$year balance sheet $(2023)$ and the planning data gathered from various business units are provided below. Please advise if all the planned investment can be financed from the company$$s own funds $($cash reserves and internally generated cash flows$)$ given the above assumptions. If not, specify how much funding needs to be sourced externally each year. To do it$,$ please prepare forecasted financial statements, FCFF using both direct $\%$ indirect method and valuate the equity assuming WACC $12\%$ and growth rate $4\%$ from year $2025.$

Balans Sheet

Assets $2023$E

Fixed assets $11233$

Current assets $17466$

Inventories $10000$

Accounts receivable $1222$

Cash $6244$

Total assets $28699$

Liabilities and equity $2023$E

Stockholder's equity $17554$

Common stock $15000$

Capital surplus $/$ Accum. Retain earning $1233$

Net incom $1321$

Liabilities $11145$

Long$-$term debt $10000$

Accounts payable $1145$

Total liabilities and stockholder's equity $28699$

Forecast $2024$ E $2025$ E

Planned operating revenues $1800025500$

Cost of goods sold

$72009000$

Selling costs $16002000$

General, and administrative expenses $41805225$

Other income $220$

Depreciation $20002000$

Interest expense $1200900$

Tax rate $20\%20\%$

Accounts payable $30003200$

Planned accounts receivable $20002500$

Planned inventories $50005500$

Aquisition of fixed assets $121005500$

Proceeds from new long$-$term debt $3000$

Repayment of debt $50005000$

Proceeds from new stock issue

Dividends $1000$