Question

Q4 You have performed the common sizing and horizontal analysis to the financial statement of X co. You have selectively considered the current (Year 0) parameters as mentioned in the table below. Based on the value's, you have calculated the Year 1 ratios and growth rates

Particulars	Year 0	Year 1
Growth rate in Sales revunes (y-o-y)	N/A	4%
Gross Profit Margin	33%	34%
SG& A expenses/ Saled revenue	25%	25%
Depreciation Net PPEt-1	10%	10%
Net working Capital Turnover	5	5.5
Net PPE turnover	2	2.5
Corporate Tax rate	25%	25%

Net working Capital: Sales revenue/Net Working Capital , Net PPE Turnover: Sales revenue/Net PPE, Depreciation/Net PPE : Depreciation/ Beginning Period Net PPE.

Sales revenue for X Co. at Year 0 = $180 million. The growth rate of 4% at Year 1 denotes growth from year0 to year1 for sale revenue. There is no debt and interest payments. Beginning period Net PPE for Year 0 is $ 80 Million. Project Sales revenue, Net profit, Gross Profit, EBITDA, Net PPE and Net working capital values for Year 1.

Answer 1