Use the following information on Company X and perform pro-forma financial modeling using a percentage sales method to answers the next two questions. Sales in 2023 are expected to grow at a rate of 5% with respect to the values of 2022. Assume the company pays out 55% of its net income.

Table 1
Income Statement, 2022			Balance Sheet, 2022
Sales	11,000,000		Assets
Costs except Depr.	-8,500,000		Cash and Equivalents		4,156,000
EBITDA	2,500,000		Accounts Receivable		3,960,000
Depreciation	-105,900		Inventories		500,000
EBIT	2,394,100		Total Current Assets		8,616,000
Interest Expense (net)	-100,500		Property Plant & Equipment		2,500,000
Pretax Income	2,293,600		Total Assets		11,116,000
Income Tax	-802,760		Liabilities &Equity
Net Income	1,490,840		Accounts Payable		4,000,000
			Debt		2,000,000
			Total Liabilities		6,000,000
			Stockholders' Equity		5,116,000
			Total Liabilities and Equity		11,116,000

Use the percent sales method to forecast the value of next year s stockholder s equity for firm X.

Use the percent sales method to estimate the firm s net new financing for firm X.