Table $6$: $(1)$ Sales are expected to increase by $22$ percent.

$(2)$ Nancy wishes to reduce COGS to $64$ percent of sales. The company will hold the increase in selling,

general, and administrative expenses to $10$ percent from the $2022$ amounts. In addition, Nancy

plans to recommend to Vivo$$s Board of Directors that the company hire the new software

developer at a salary of $$80,000.$ This amount will be added to the general and administrative

expense.

$(3)$ Given that Vivo plans to hire the new software developer, Nancy would like to keep fixed asset

acquisitions to a minimum. However, the company has delayed acquiring certain fixed assets in

the past and must now invest $$145,000$ in fixed assets in $2023.$ In $2023,$ depreciation will be $$22,000.$

$(4)$ The interest expense is dependent on the amount of debt Vivo will have outstanding in $2023$ and

the maturity of the loan. Nancy must determine the total amount of costly debt Vivo must secure

in $2023$ and use Table $5$ to determine the cost of the debt. The long$-$term debt of $$38,000$ currently

outstanding can be renegotiated.

$(5)$ Vivo$$s tax rate will remain unchanged for $2023.$ Nancy will recommend to Vivo$$s Board that no

dividends be paid in $2023.$

$(6)$ Nancy feels the liquidity of the company must be improved. She plans to increase cash to $$35,000$

and maintain the current level of marketable securities unless external financing is required in which

case they will be sold. Nancy has recognized the problem with the activity ratios and for $2023,$ she

wants to reduce Vivo$$s average collection period to $32$ days, average age of inventory to $56$ days,

and the average payment period, based on COGS, to $43$ days.

$(7)$ Accruals will increase at the same rate as sales. No changes are anticipated with long$-$term debt

and common shares. Once the need for financing is determined, a decision will be made regarding

the form of financing. Question $1$: Describe the Information and Communication Technology $($ICT$)$ sector in Qatar and its outlook for the

upcoming years $(2023$ onward$).$ Are the projection given in Table $6$ in line with your research on the

future of this sector. If not which assumptions or projections would you change and what would be the

new value to use. Question $2$: What do we mean by pro$-$forma financial statements?