1. "What is the forecasted value of PreTax Income for 2020? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

10 points

QUESTION 4

1. "What is the forecasted value of Net Income for 2020? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

10 points

QUESTION 5

1. "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Cash and Equivalents for 2020? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

10 points

QUESTION 6

1. "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Assets for 2020? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

10 points

QUESTION 7

1. "Before making additional balancing adjustments to the Balance Sheet, what is the forecasted value of Total Liabilities for 2020? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: 1000000."

   "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 2020 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 2019. Sales in 2020 are expected to grow at a rate of 17%, with respect to the values of 2019. Assume also that the total values in 2020 of interest expense and debt will not change from its 2019 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, 2019			Balance Sheet, 2019
   Sales	900,000		Assets
   Costs except Depr.	-650,000		Cash and Equivalents		300,000
   EBITDA	250,000		Accounts Receivable		200,000
   Depreciation	-2,500		Inventories		65,000
   EBIT	247,500		Total Current Assets		565,000
   Interest Expense (net)	-200,000		Property Plant & Equipment		100,000
   Pretax Income	47,500		Total Assets		665,000
   Income Tax	-14,250		Liabilities &Equity
   Net Income	33,250		Accounts Payable		300,000
   			Debt		100,000
   			Total Liabilities		400,000
   			Stockholders' Equity		265,000
   			Total Liabilities and Equity		665,000

   What is the forecasted value of sales for 2020? Express the numerical terms of your answer completely. For example: If your answer is one million dollars, write: