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Use Table 1 and the following information on Company x to perform pro - forma financial modeling using a percentage sales method and answer the

Use Table 1 and the following information on Company x to perform pro-forma financial modeling using a percentage sales method and answer 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 their 2022 values; income tax will remain at 3% of the Pretax Income; and that Company X initially plans to pay out 35% of its net income to its shareholders.
\table[[\table[[Income Statement, 2022]],{
\table[[Balance Sheet, 2022],[Assets]]}],[Sales,800,000],[Cost Except Depreciation,-650,000,Cash and Equivalents,250,000],[EBITDA,150,000,Accounts Receivable,90,000],[Depreciation,-2,000,Inventories,20,000],[EBIT,148,000,Total Current Assets,360,000],[Interest Expense (Net),-100,500,\table[[],[Equipment]],200,000],[Pretax Income,47,500,Total Assets,560,000],[Income Tax,-1,425,Liabilities & Equity],[Net Income,46,075,Accounts Payable,200,000],[,,Debt,100,000],[,,Total Liabilities,300,000],[,,Stockholders' Equity,260,000],[,,Total Liabilities and Equity,560,000]]
What is the forecasted value of sales for 2023?
What is the forecasted value of EBITDA for 2023?
What is the forecasted value of pre-tax income for 2023?
What is the forecasted value of Net Income for 2023?
Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Cash and Equivalents for 2023?
Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Assets for 2023?
Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2023?
Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2023?
What is the estimate for Net New Financing for 2023? Note: Make sure you use the correct positive or negative sign.
What option can the financial managers of Company x implement to balance Total Assets and Total Liabilities and Equity for 2023?
Increase the debt by the absolute value of the amount indicated in your calculations of net new financing;
Increase dividends by the absolute value of the amount indicated in your calculations of net new financing;
Either of a. or b. would work;
Neither a. nor b. would work.
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