Baby Dolls. Balance Sheet Forecast $2009.$ Production in Spain

ASSETS $($Thousands of Euros$)$ June $\text{'}08$ July $\text{'}08$ Aug. Sept. Oct. Nov. Dec. $\text{'}08$ Jan. $\text{'}09$ Febr. March Apr. May June $\text{'}09$

Cash $0000000001,4641,6878160$

Receivables $(1)3,3523,5664,0806,65015,35033,05038,05029,40010,4501,9001,6502,4003,400$

Inventory $(1)6207751,9754,9259,6254,475600150200475525700620$

Current assets $3,9724,3416,05511,57524,97537,52538,65029,55010,6503,8393,8623,9164,020$

Noncurrent assets $(2)4,5444,5004,5004,5004,5004,5004,5004,5004,5004,5004,5004,5004,500$

Total assets $8,5168,84110,55516,07529,47542,02543,15034,05015,1508,3398,3628,4168,520$

LIABILITIES & EQUITY

Payables $(1)$ Other liabilities

Line of credit $($bank$)$ Current liabilities Long$-$term debt $(3)$

Capital and reserves $(4)$ Net income $($accumulated$)$

Equity

Total liabilities & equity

or credit needed $(-)$

Notes on the Balance Sheet

Important note: When sales are seasonal you cannot calculate the elements of NFO as percentage of sales. You need to go month after month.

$(1)$ Receivables at $90$ days. Inventory $=30$ days of COGS next month. Payables $=60$ days of COGS.

$(2)$ Noncurrent assets constant: new investment $=$ depreciation.

$(3)$ Payment of principal, $50$ in June and $50$ in December.

$(4)$ Dividends: $50\%$ x net income of previous year. Paid in September.

Average

$9,817$

$2,634$

$-7,183$

Total Assets $19,413$ what financial metrics should Baby Dolls' CEO focus on when evaluating the move to China?