"PART I: Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers the following questions. To do this assume that the percentage values with respect to sales of the 2023 (i) costs except depreciation, (ii) cash and equivalents, (iii) accounts receivable, (iv) inventories, and (v) accounts payable will remain fixed at their respective percentage values in 2022. Assume also that income tax will remain at 25% of the Pretax Income. Company Y sells a product for which in 2022 the total market size was of 3,000,000 units, of which Company Y owned a share of 25%. Both, the total market size and Company Y s market share are expected to grow at a 10\% yearly rate for the next five years. The price of the product is $2.2 in 2022 and is expected to remain at that price for the next years. In 2022, the outstanding debt of Company Y is $1,500,000, for which the company makes yearly interest payments of 10%. The executives of Company Y are considering making a significant capital investment in 2023 of $3,000,000 to purchase new machinery. The company plans to finance this investment with a 30 -year loan that makes yearly interest payments equivalent to 9% of its principal. The principal is paid when the loan matures. The following table summarizes the debt and interest payment of Company Y. Currently, Company Y makes yearly expenditures on replacement capital investment of $70,000. If the company makes the planned expansion, it has been decided that it will continue making replacement capital investment of $70,000 until and including 2023; and starting in 2024 it will perform yearly expenditures on replacement capital investment of $150,000 The current and the planned expenditures on replacement of capital investment will be financed by the company s cash flow. The following table indicates for 2022 Company Y s values of i. opening book value, ii. capital investment, iii. depreciation, and iv. closing book value. The Table also indicates the 2023-2024 forecast values of capital depreciation if the planned expansion were to occur in 2023. Because no decision has yet been done about dividends, before making any balancing adjustments to the Balance Sheet, assume that these will be $0 in 2023. The following table contains Company Y s income statement for 2022. The following table contains Company Y s balance sheet for 2022. What is the forecasted value of sales for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "What is the forecasted value of Interest on Debt for 2023? Enter your answer as POSITIVE value (not as a negative value). Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 3 "What is the forecasted value of Capital Investment for 2023? Enter your answer as POSITIVE value (not as a negative value). Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 4 "What is the forecasted value of EBITDA for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 5 "What is the forecasted value of Net Income for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Cash and Equivalents for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 7 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Property, Plant and Equipment for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 8 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Assets for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 10 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 11 "What is the estimate for Net New Financing for 2023? Note: Make sure you use the correct positive or negative sign. Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." What option can the financial managers of Company Y implement in order to balance Total Assets and Total Liabilities and Equity for 2023? Increase the debt by the absolute value of the amount indicated in your calculations of net new financing; Increase dividends by the absolute value of the amount indicated in your calculations of net new financing; Either of a. or b. would work; Neither of a. or b. would work; QUESTION 13 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Net Working Capital for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 14 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted Increase of Net Working Capital for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." 'Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Free Cash Flow for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "PART I: Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers the following questions. To do this assume that the percentage values with respect to sales of the 2023 (i) costs except depreciation, (ii) cash and equivalents, (iii) accounts receivable, (iv) inventories, and (v) accounts payable will remain fixed at their respective percentage values in 2022. Assume also that income tax will remain at 25% of the Pretax Income. Company Y sells a product for which in 2022 the total market size was of 3,000,000 units, of which Company Y owned a share of 25%. Both, the total market size and Company Y s market share are expected to grow at a 10\% yearly rate for the next five years. The price of the product is $2.2 in 2022 and is expected to remain at that price for the next years. In 2022, the outstanding debt of Company Y is $1,500,000, for which the company makes yearly interest payments of 10%. The executives of Company Y are considering making a significant capital investment in 2023 of $3,000,000 to purchase new machinery. The company plans to finance this investment with a 30 -year loan that makes yearly interest payments equivalent to 9% of its principal. The principal is paid when the loan matures. The following table summarizes the debt and interest payment of Company Y. Currently, Company Y makes yearly expenditures on replacement capital investment of $70,000. If the company makes the planned expansion, it has been decided that it will continue making replacement capital investment of $70,000 until and including 2023; and starting in 2024 it will perform yearly expenditures on replacement capital investment of $150,000 The current and the planned expenditures on replacement of capital investment will be financed by the company s cash flow. The following table indicates for 2022 Company Y s values of i. opening book value, ii. capital investment, iii. depreciation, and iv. closing book value. The Table also indicates the 2023-2024 forecast values of capital depreciation if the planned expansion were to occur in 2023. Because no decision has yet been done about dividends, before making any balancing adjustments to the Balance Sheet, assume that these will be $0 in 2023. The following table contains Company Y s income statement for 2022. The following table contains Company Y s balance sheet for 2022. What is the forecasted value of sales for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "What is the forecasted value of Interest on Debt for 2023? Enter your answer as POSITIVE value (not as a negative value). Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 3 "What is the forecasted value of Capital Investment for 2023? Enter your answer as POSITIVE value (not as a negative value). Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 4 "What is the forecasted value of EBITDA for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 5 "What is the forecasted value of Net Income for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Cash and Equivalents for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 7 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Property, Plant and Equipment for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 8 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Assets for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 10 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 11 "What is the estimate for Net New Financing for 2023? Note: Make sure you use the correct positive or negative sign. Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." What option can the financial managers of Company Y implement in order to balance Total Assets and Total Liabilities and Equity for 2023? Increase the debt by the absolute value of the amount indicated in your calculations of net new financing; Increase dividends by the absolute value of the amount indicated in your calculations of net new financing; Either of a. or b. would work; Neither of a. or b. would work; QUESTION 13 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Net Working Capital for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 14 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted Increase of Net Working Capital for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." 'Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Free Cash Flow for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000