S Review A View E A AaBbCcDdEe AaBbCcDdEe AaBbccdee List Paragraph AaBbc No Spa Normal Body Text 2. Ricardo Martinez has prepared the following financial statement projections as part of his business plan for starting the Martinez Products Corporation. The venture is to manufacture and sell electronic components that make standard overhead projectors "smart" by allowing them to operate through voice command. Below are Martinez Products projected financial statements: Martinez Products Corporation Projected income statement for year Sales COGS Operating expense Depreciation Interest expense EBIT Taxes (25%) Net income $200,000 - 100,000 -75,000 -4,000 -1000 20,000 -5,000 15,000 Cash A/R Inventories Total current assets Martinez Products Corporation Projected balance sheet for year 1 $10,000 A/P 20,000 Accrued liabilities 20.000 Bank loans 50,000 Total current liabilities $15,000 10,000 10.000 35,000 Gross foxed assets Accumulated depreciation Net fixed assets Total assets 54,000 4,000 50.000 100,000 Common stock Retained earnings Total equity Total liabilities & equity 53,000 12,000 65,000 100,000 A. Rate the potential attractiveness of the Martinez Products venture using the guidelines for the pricing/profitability factor category for the VOS Indicator. B. What is Martinez Products expected monthly cash burn rate? How long can Martinez Products maintain this cash burn rate without additional financing? C. Ricardo projects sales to double to $400,000 in the second year of operation. If the financial ratios calculated for Year 1 remain the same in Year 2, what would be Martinez's dollar amount projections in his business plan for: (a) gross profit, (b) net profit or income, and (c) total assets? D. How would your answers change in Part Dif the gross profit margin in the second year is projected to be 60%, the net profit margin 25%, and the asset intensity is at 5 times turnover? Focus