The company XYZ, S.A. de C.V. 5 years ago it set up an industrial plant to manufacture product A. To carry out the installation it was necessary to take out a long-term loan.

The business, like most companies that start operations, obtained significant losses in the first year of operation; however, from the second year on, he has been working with great success. Therefore, you, who have businesses in the same industrial sector, are interested in acquiring the total share package.

Current investors are willing to sell if they are paid 125% of its original value for each share.

The available information that they can give you so that you know the current situation of the company is the following:

Capacity utilization in the last year: 90% Plant capacity (pieces per year): 1,643,000 Book value of fixed assets at the end of the last $4,363,000.00 year: Last year sales income: $2,952,000.00 Accounts receivable at the end of the last year: 20 days of sales 70% of sales Cost of what was sold in the last year: revenue Inventories of raw materials: $27,000.00 Finished product inventories: $32,000.00 20% of sales Profit before profit sharing to workers: revenue Tax regime 30% Net profit obtained from the first to the fourth $805,700.00 year: Dividends paid from the beginning to the end of the last year: $550,000 Total credit balance at the end of the last year: $480,000 Semiannual payments made: 10 Semiannual payments to be made to settle the 4 credit: Amount of semiannual principal payments: $120,000 Cash on hand at the end of the last year: $75,652 Due to suppliers at the end of the last year: $54,000 Capital contributed by shareholders in the $3,000,000 preoperative period: Additional capital contributed by shareholders in the first year of operation: $500,000