8. Looking at the above financials only, might this be an attractive business?

a. Yes! Taxes are low, making this an attractive opportunity. b. Yes! Revenue and profits are growing nicely, making this an attractive business.

c. Yes! Low depreciation expense is an attractive quality.

Beta Financial Statement (questions 8-12) BETA FINANCIAL STATEMENTS 2016 2017 2018 2019 2020 Revenue: 1,020,938 1,531,407 1,914,259 2,143,970 2,208,289 COGS 357,328 535,993 669,991 750,390 772,901 Gross Profit 663,610 995,415 1,244,268 1,393,581 1,435,388 Depreciation 10,600 10,600 10,600 10,600 10,600 SG&A 357,328 535,993 669,991 750,390 772,901 R&D 102,094 153,141 191,426 214,397 220,829 EBIT 193,588 295,681 372,252 418,194 431,058 Interest 9,000 12,000 12,000 12,000 12,000 Pretax Profit 184,588 283,681 360,252 406,194 419,058 Tax Expense (21%) 40,359 61,799 77,879 87,527 90,228 Net Income 144,228 221,882 282,373 318,667 328,830