Logo, Inc., owns and operates a small chain of sportswear stores located near colleges and universities. Logo has experienced significant growth in recent years. The following data are available for Logo:

Required:
1. Determine how much Logo's sales, net income and assets have grown during these three years.
2. Explain how Logo has financed the increase in assets.
3. Determine whether Logo's liquidity is adequate.
4. Explain why interest expense is growing.
5. If Logo's sales grow by 25 percent in 2010, what would you expect net income to be?
6. If Logo's assets must grow by 25 percent to support the 25 percent sales increase and if 50 percent of net income is paid in dividends, how much capital must Logoraise?

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Logo, Inc. Comparative Statements of Income Year Ended December 31, 2007 $34,425 20,700 $13,725 In thousands) 2009 2008 es Cost of goods sold Gross margin Other income, net $51,638 31,050 $20,588 383 $20,971 24,840 $16,470 426 $16,896 405 Costs and expenses: $11350 554 $11,904 $16,570 1,237 $17,807 $ 3,164 885 $ 2,279 $13,465 765 $14,230 $2,666 746 $1,920 Selling and administrative Interest Total costs and expenses Income before income taxes Provision for income taxes Net income 623 $1,603 Logo, Inc. Comparative Balance Sheets (In thousands) December 31, ASS ETS 2009 2008 2007 Current assets: Cash Accounts receivable Inventories $360 293 236 3,690 3,285 3,442 $11,082 8,461 6,963 2,756 562 $16,516 $12,646 $10,281 4,658 6,064 4,478 Total current assets Property, plant, and equipment (net) Other assets Total assets 4,860 574 3,600 585 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities $4,230 1,620 450 Short-term notes payable Accounts payable 720 Total current liabilities 5,377 2,633 1,170 Long-term debt Total liabilities Paid-in capital Retained earnings 8,527 5,783 4,320 $4,725 4,725 4,725 2,138 7,989 6,863 5,961 $16,516 $12,646 $10,281 3,264 Total stockholders' equity Total liabilities and stockholders' equity