Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next
"Use Table 1 and the following information on Company X to perform a pro-forma financial modeling using a percentage sales method, and answers the next questions. Note: When applying the percentage sales method, you should assume that the 2023 percentage values with respect to sales of the (i) costs except depreciation, (ii) depreciation, (iii) cash and equivalents, (iv) accounts receivable, (v) inventories, (vi) property, plant and equipment, and (vi) accounts payable will remain equal to those percentages of 2022. Sales in 2023 are expected to grow at a rate of 10%, with respect to the values of 2022 . Assume also that the total values in 2023 of interest expense and debt will not change from its 2022 values; income tax will remain at 3% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders. Insert TABLE 1 here What is the forecasted value of sales for 2023 ? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000 ." "What is the forecasted value of Net Income for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 5 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Cash and Equivalents for 2023 ? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000." QUESTION 6 "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Assets for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started