Blaa

Had

k sed on Solid State Drives (SSDs), which is the fastest growing division in the overall memory

industry. Industry statistics illustrated that the SSD market expanded from about $400 million in

2007 to $1.1 billion in 2009

innovation of new electronics and computers devices, the industry was facing new challenges,

which threatened the profits of the company and made the company to worry about its future.

ofit margins and it also affected its working capital requirements, which lowered its investment

capacity and also worsen Flash Memory Inc.’s financial position in the market.

The analysis was performed to solve the given requirements below:

Financial statement forecast from 2010 to 2012 as if the new product line project will not be

approved with an assumption that company will borrow from bank:

not seem reasonable. One of the most unreasonable assumptions is that purchase should be 60% of the

cost of goods sold in each year; therefore, inventory value should fall from 2010 to 2012 instead of

growing to the net sale. It is unreasonable because by using this assumption, inventory value will drop

dramatically instead of growing proportionally, as inventory outflow will increase due to small purchase.

Moreover, property, plant and equipment (PP&E) as percentage of total, more investment is required in

non-current assets as compared to past. Investment in non-current assets is assumed fixed of $900,000.

Therefore, this assumption also seems to be unreasonable and jal hdak kah qwhdh kahd had hwkj ldpf

judbs lfhsm iksmd jdhf kshd kshdf .