Question 1

1. "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 2020 (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 2019. Assume also that income tax will remain at 30% of the Pretax Income. Company Y sells a product for which in 2019 the total market size was of 500,000 units, of which Company Y owned a share of 20%. Both, the total market size and Company Y s market share are expected to grow at a 25% yearly rate for the next five years. The price of the product is $114 in 2019 and is expected to remain at that price for the next years.

   TABLE B.1	Market Analysis	2019	2020	2021	2022
   	Market Size	500,000	625,000	781,250	976,563
   	Market Share	20.000%	25.000%	31.250%	39.063%
   	Production Volume	100,000
   	Average Sales Price:	114
   	Sales