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 wercentage sales method, you should assume that the 2023 percentage values with respect to sales of the () costs except depreciation, (4) depreciation, (4) cash and equivalents, (v) accounts eceivable, (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 o 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 3% of the Pretax income, and that Company X anitially plans to payout 35% of its net income to its shareholders.insert TABLE 1 here 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" Table 1 Income Statement, 2022 Sales Costs except Depr EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 800,000 -650,000 150,000 -2,000 148,000 -100,500 47,500 -1.425 46,075 Balance Sheet, 2022 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant & Equipment Total Assets Liabilities & Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 250,000 90,000 20,000 360,000 200,000 560,000 200,000 100,000 300,000 260,000 560,000 QUESTION 2 "What is the forecasted value of EBITDA for 20237 Express the numerats of your milion dollars, write 1000000 QUESTION 3 "What is the forecasted value of Pretax income for 20237 Express the numerical terms of your ser completet. Forampe tyer is one o dolars, 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 wercentage sales method, you should assume that the 2023 percentage values with respect to sales of the () costs except depreciation, (4) depreciation, (4) cash and equivalents, (v) accounts eceivable, (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 o 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 3% of the Pretax income, and that Company X anitially plans to payout 35% of its net income to its shareholders.insert TABLE 1 here 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" Table 1 Income Statement, 2022 Sales Costs except Depr EBITDA Depreciation EBIT Interest Expense (net) Pretax Income Income Tax Net Income 800,000 -650,000 150,000 -2,000 148,000 -100,500 47,500 -1.425 46,075 Balance Sheet, 2022 Assets Cash and Equivalents Accounts Receivable Inventories Total Current Assets Property Plant & Equipment Total Assets Liabilities & Equity Accounts Payable Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 250,000 90,000 20,000 360,000 200,000 560,000 200,000 100,000 300,000 260,000 560,000 QUESTION 2 "What is the forecasted value of EBITDA for 20237 Express the numerats of your milion dollars, write 1000000 QUESTION 3 "What is the forecasted value of Pretax income for 20237 Express the numerical terms of your ser completet. Forampe tyer is one o dolars, write 1000000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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
Dercentage sales method, you should assume that the 2023 percentage values with respect to sales of the () costs except depreciation () depreciation, (4) 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
o 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 3% of the Pretax Income, and that Company X
initially plans to payout 35% of its net income to its shareholders Insert TABLE 1 here What is the forecasted value of sales for 20237 Express the numerical terms of your answer completely For
example. If your answer is one million dollars, write: 1000000
Table 1
Income Statement, 2022
Sales
800,000
Costs except Depr -650,000
EBITDA
150,000
Depreciation
-2,000
148,000
-100,500
EBIT
Interest Expense
(net)
Pretax Income
Income Tax
Net Income
47,500
-1.425
46,075
Balance Sheet, 2022
Assets
Cash and Equivalents
Accounts Receivable
Inventories
Total Current Assets
Property Plant &
Equipment
Total Assets
Liabilities & Equity
Accounts Payable
Debt
Total Liabilities
Stockholders' Equity
Total Liabilities and
Equity
250,000
90,000
20,000
360,000
200,000
560,000
200,000
100,000
300,000
260.000
560,000
QUESTION 2
"What is the forecasted value of ETDA for 20237 Express the numeroffen milion dollars, write: 1000000
QUESTION 3
"What is the forecasted value of PreTax Income for 2023 Express the numerical terms of your answer completely. For exampret it your answer is one indon olars, wite: 1000000
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