1. ACME sells 8,750,000 traps at S20 each. Cost Of goods sold (COGS) is 70% of sales. Selling, general and administrative costs (SG&A) are $26,000,000. Acme has depreciation expense of $1,000,000 on their $149 million in gross property, plant and equipment. Accumulated depreciation is $9 million. Acme has $50 million in long-term debt. The interest rate is 6% so the interest expense is 3M. Tax rate is 25%. Acme pays 60% of net income out as dividends. Cash is 2% of sales; acounts receivable is 5% of sales,Tnventory (10%), accounts payable (15%), and accruals (2%) are the specified percentage of COGS They have S20M in common stock and started the year with $66,925,000 in retained earnings. Complete YO. 2. Assume sales are expected to grow by 12% and cost of goods sold by 15%. Common stock will not change. Depreciation expense is $1M in Y1. To estimate SG&A expenses, use SGA $20M+(.05 x Sales). Assume the firm maintains 50M in long-term debt. Use cash to balance the balance sheet. Finance 6301 Income Statement (in M) Sales Cost of Goods Sold Selling, General and Admin Expenses Depreciation Expense Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Taxes Net Income Dividends YO Y1 Assets YO Y1 Cash Accounts Receivable Inventory Current Assets Gross Property, Plant &Equipment Accumulated Depreciation Total Assets Liabilities and Net Worth YO Y1 Accounts Payable Accruals Current Liabilities Long-Term Debt Common Stock Retained Earnings Total Liabilities And Net Worth