USING COMPARATIVE STATEMENTS. 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:
. By how much have Logo’s sales, net income, and assets grown during these 3 years?
How has Logo financed the increase in assets?
Is Logo’s liquidity adequate?
Why is interest expense growing?
If Logo’s sales grow by 25% in 1996, what would you expect net income to be?
If Logo’s assets must grow by 25% to support the 25% sales increase and if 50% of net income is paid in dividends, how much capital must Logo raise?

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(in thousands) Sales Cost of sales Gross margin LOGO, INC. Comparative Statements of Income 1995 1994 1993 $51,638 $41,310 $34,425 31,050 24,840 20,700 20,588 16,470 13,725 Other income 3831 426 405 20,971 16,896 14,130 Cost and expenses: Selling and administrative 16,570 13,465 11,350. Interest 1,237 765 554 17,807 14,230 11,904 Income before income taxes Provision for income taxes 3,164 2,666 2,226 885 746 623 Net income $ 2,279 $1,920 $1,603.