Use the following information on Company Y and perform pro-forma financial modeling using a planned expansion method to answers questions (1)-(14). To do this assume that the percentage values with respect to sales of the (i) costs except depreciation, (ii) cash and equivalents, (iii) accounts receivable, (iv) inventories, and (v) accounts payable will stay fixed at the values corresponding for 2016. Assume that costs except depreciation in 2016 is $3496500 and that income tax will remain fixed at 35% of the Pretax Income. Consider Company Y. This firm sells a product for which in 2016 the total market size was of 700000 units, of which Company Y owned a share of 6%. The total market size is expected to grow at a 7% rate. Company Ys market share is expected to remain at 6%. The price of the product is $555 in 2016 and is expected to evolving according to the values listed in the following Table. Market Analysis 2016 2017 2018 2019 Market Size 700,000 749,000 801,430 857,530 Sales Price: $555.00 $593.85 $635.42 $679.90 In 2016, the outstanding debt of Company Y is $1001500, for which the company makes yearly interest payments of 9.5%. The executives of Company Y are considering making a significant capital investment in 2017 of $6600000 to purchase new machinery and be able to satisfy forecasted future market demand. The company plans to finance this investment with a 20-year loan that makes yearly interest payments equivalent to 8.5% of its principal. The principal is paid when the loan matures. Currently, Company Y makes yearly expenditures on replacement capital investment of $99000. If the company makes the planned expansion it is decided the company will perform total yearly expenditures on replacement capital investment of $500160, starting in 2018. The current and the planned expenditures on replacement of capital investment will be financed by the companys cash flow. The following table indicates for 2016 Company Ys values of i. opening book value, ii. capital investment, iii. depreciation, and iv. closing book value. The Table also indicates the 2017-2018 forecast values of capital depreciation if the planned expansion were to occur in 2017. Fixed Assets & Capital Investment 2016 2017 2018 Opening Book Value 999,000 Depreciation (98,820) (692,836) (675,495) The following table contains Company Ys balance sheet for 2016. Balance Sheet 2016 2017 Assets Cash and Equivalents 8,158,500 Accounts Receivable 8,158,500 Inventories 2,331,000 Total Current Assets Property Plant and Equipment Total Assets Liabilities and Equity Accounts Payable 6,993,000 Total Current Liabilities Debt Total Liabilities Stockholders' Equity Starting Stockholders' Equity 1,000,000 Net Income Dividends Stockholders' Equity Total Liabilities and Equity 1. What is the forecast value of sales for 2018?