"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 17%, 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 30% of the Pretax Income; and that Company X initially plans to payout 35% of its net income to its shareholders.

Table 1
Income Statement, 2022			Balance Sheet, 2022
Sales	1,000,000		Assets
Costs except Depr.	-650,000		Cash and Equivalents		300,000
EBITDA	350,000		Accounts Receivable		200,000
Depreciation	-2,500		Inventories		65,000
EBIT	347,500		Total Current Assets		565,000
Interest Expense (net)	-200,000		Property Plant & Equipment		100,000
Pretax Income	147,500		Total Assets		665,000
Income Tax	-44,250		Liabilities &Equity
Net Income	103,250		Accounts Payable		300,000
			Debt		100,000
			Total Liabilities		400,000
			Stockholders' Equity		265,000
			Total Liabilities and Equity		665,000

QUESTIONS 1:

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."

QUESTIONS 2:"What is the forecasted value of EBITDA for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

QUESTIONS 3:"What is the forecasted value of PreTax Income for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

QUESTIONS 4:"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."

QUESTIONS 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."

QUESTIONS 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."

QUESTIONS 7:"Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

QUESTIONS 8:Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Shareholder's Equity for 2023? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

QUESTIONS 9:"What is the estimate for Net New Financing for 2023? Note: Make sure you use the correct positive or negative sign. Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

QUESTIONS 10:

1. What option can the financial managers of Company X implement in order 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 of a. or b. would work;