Question: Before making any adjustments to balance Total Assets with Total Liabilities and Equity, what is Company Y s forecast value of Total Liabilities and Equity for 2020?"

Question: How much are the net new financing for Company Y s on 2020?

Interest on Debt Currently, Company Ymakes yearly expenditures on replacement capital investment of $90000. If the company makes the planned expansion it is decided the company will perform yearly expenditures on replacement capita nvestment of $325000. The current and the planned expenditures on replacement of capital investment will be inanced by the company's cash flow. The following table indicates for 2019 Company Ys values of i.opening book value, li. capital investment, i. depreciation, and iv. closing book value. The Table also indicates the 2020-2021 forecast values of capital depreciation if the planned expansion were to occur in 2020 2019 2020 2021 Fixed Assets & Capital Investment Opening Book Value Capital Investment Depreciation Closing Book Value 1.500.000 90,000 -127,200 1,462,800 -356,224 -353,726 The following table contains Company Y's income statement for 2019. 2019 2020 Income Statement: Sales Costs except Depr EBITDA Depreciation EBIT 119,660,100 -9,572.808 110,087,292 -127,200 109,960,092 -99,000 109,861,092 -38,451,382 71,409.710 Interest Expense (net) Pretax Income Income Tax Net Income The following table contains Company Y's balance sheet for 2019. 2019 2020 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets 41,881,035 41.881,035 17.949,015 101,711,085 1,462,800 Property Plant and Equipment Total Assets 103,173,885 41.881,035 41,881,035 900,000 42,781,035 Liabilities and Equity Accounts Payable Total Current Liabilities Debt Total Liabilities Stockholders' Equity Starting Stockholders' Equity Net Income Dividends Stockholders' Equity Total Liabilities & Equity 5,000,000 71.409,710 -16,016,860 60,392,850 103,173,885 Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers the next two questions. To do this assume that the percentage values with respect to sales of the costs except depreciation cash and equivalents. ( accounts receivable. (1) inventories and (v) accounts payable will stay fixed at the values corresponding for 2019 Assume also that income tax will remain at 35% of the Pretax income. Consider Company Y. This firm sells a product for which in 2019 the total market size was of 2999000 units of which Company Yowned a share of 35% Both, the total market size and Company Ys market share are expected to grow at a 5% 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. 2020 3.148,950 37% 2019 2.999,000 35% 1,049,650 S 114.00 2021 3.306,398 39% Market Analysis Market Size Market Share Production Volume Sales Price: Sales 2022 3.471.717 41% In 2019, the outstanding debt of Company Y is $900000, for which the company makes yearly interest payments of 11%. The executives of Company Y are considering making a significant capital investment in 2020 of $2900000 to purchase new machinery. The company plans to finance this investment with a 30-year loan that makes yearly interest payments equivalent to 8% of its principal. The principal is paid when the loan matures. The following table summarizes the debt and interest payment of Company Y. 2019 900,000 Debt and Interest Table Outstanding Debt New Net Borrowing Interest on Debt 2020 900,000 2.900,000 2021 3,800,000 Currently, Company Ymakes yearly expenditures on replacement capital investment of $90000. If the company makes the planned expansion it is decided the company will perform yearly expenditures on replacement capital investment of $325000. 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 2019 Company Ys values of i.opening book value, i. capital investment, i depreciation, and in closing book value. The Table also indicates the 2020-2021 forecast values of capital depreciation if the planned expansion were to occur in 2020. Fixed Assets & Capital Investment 2019 2020 2021 Opening Book Value Capital Investment Depreciation Closing Book Value 1,500,000 90,000 -127.200 1,462,800 -356.224 -353.726 The following table contains Company Ys income statement for 2019. 2019 2020 Income Statement: Sales Costs except Depr. EBITDA Depreciation | EBIT Interest Expense (net) Pretax Income Income Tax Net Income 119.660.100 -9.972,80 110,087,292 -127.200 109.968,092 -99.000 109.861,092 -38,451,382 71.409,710 The following table contains Company Y's balance sheet for 2019. Interest on Debt Currently, Company Ymakes yearly expenditures on replacement capital investment of $90000. If the company makes the planned expansion it is decided the company will perform yearly expenditures on replacement capita nvestment of $325000. The current and the planned expenditures on replacement of capital investment will be inanced by the company's cash flow. The following table indicates for 2019 Company Ys values of i.opening book value, li. capital investment, i. depreciation, and iv. closing book value. The Table also indicates the 2020-2021 forecast values of capital depreciation if the planned expansion were to occur in 2020 2019 2020 2021 Fixed Assets & Capital Investment Opening Book Value Capital Investment Depreciation Closing Book Value 1.500.000 90,000 -127,200 1,462,800 -356,224 -353,726 The following table contains Company Y's income statement for 2019. 2019 2020 Income Statement: Sales Costs except Depr EBITDA Depreciation EBIT 119,660,100 -9,572.808 110,087,292 -127,200 109,960,092 -99,000 109,861,092 -38,451,382 71,409.710 Interest Expense (net) Pretax Income Income Tax Net Income The following table contains Company Y's balance sheet for 2019. 2019 2020 Balance Sheet Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets 41,881,035 41.881,035 17.949,015 101,711,085 1,462,800 Property Plant and Equipment Total Assets 103,173,885 41.881,035 41,881,035 900,000 42,781,035 Liabilities and Equity Accounts Payable Total Current Liabilities Debt Total Liabilities Stockholders' Equity Starting Stockholders' Equity Net Income Dividends Stockholders' Equity Total Liabilities & Equity 5,000,000 71.409,710 -16,016,860 60,392,850 103,173,885 Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers the next two questions. To do this assume that the percentage values with respect to sales of the costs except depreciation cash and equivalents. ( accounts receivable. (1) inventories and (v) accounts payable will stay fixed at the values corresponding for 2019 Assume also that income tax will remain at 35% of the Pretax income. Consider Company Y. This firm sells a product for which in 2019 the total market size was of 2999000 units of which Company Yowned a share of 35% Both, the total market size and Company Ys market share are expected to grow at a 5% 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. 2020 3.148,950 37% 2019 2.999,000 35% 1,049,650 S 114.00 2021 3.306,398 39% Market Analysis Market Size Market Share Production Volume Sales Price: Sales 2022 3.471.717 41% In 2019, the outstanding debt of Company Y is $900000, for which the company makes yearly interest payments of 11%. The executives of Company Y are considering making a significant capital investment in 2020 of $2900000 to purchase new machinery. The company plans to finance this investment with a 30-year loan that makes yearly interest payments equivalent to 8% of its principal. The principal is paid when the loan matures. The following table summarizes the debt and interest payment of Company Y. 2019 900,000 Debt and Interest Table Outstanding Debt New Net Borrowing Interest on Debt 2020 900,000 2.900,000 2021 3,800,000 Currently, Company Ymakes yearly expenditures on replacement capital investment of $90000. If the company makes the planned expansion it is decided the company will perform yearly expenditures on replacement capital investment of $325000. 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 2019 Company Ys values of i.opening book value, i. capital investment, i depreciation, and in closing book value. The Table also indicates the 2020-2021 forecast values of capital depreciation if the planned expansion were to occur in 2020. Fixed Assets & Capital Investment 2019 2020 2021 Opening Book Value Capital Investment Depreciation Closing Book Value 1,500,000 90,000 -127.200 1,462,800 -356.224 -353.726 The following table contains Company Ys income statement for 2019. 2019 2020 Income Statement: Sales Costs except Depr. EBITDA Depreciation | EBIT Interest Expense (net) Pretax Income Income Tax Net Income 119.660.100 -9.972,80 110,087,292 -127.200 109.968,092 -99.000 109.861,092 -38,451,382 71.409,710 The following table contains Company Y's balance sheet for 2019