Balance Sheet (in millions)

Cash .9 Accts Payable .35

Accts Rec. .47 Notes Payable (10% payable this year) .4

Inventory .32 Other Long term debt 2.8

Fixed Assets 4.85 Equity

Total Assets 6.54

Income Statement

Net Sales

Cost of Sales

Gross Profit

Selling general and administrative

R & D

Depreciation

Operating Income

Other Income

EBIT

Int. Exp.

Pretax income

Taxes

Net Income

Sales 2,300,000 pieces @ 7.50 each

Depreciation 99,000.00

Operating margin .062

No other income

Int expense 315,000.00

Taxes 21%

Payout ratio 30%

1. What is the cash flow? _____________

2. How much can the company grow without external financing ? _________________

3. What is the total of the cost of sales, R& D and selling and administrative costs? _____________________

4. How much can the company grow with external financing if they maintain current financial policy? ______________________

5. What is the current ratio?__________________

6. What is the debt to equity?___________________

7. What is the goal of financial management.

8. What is the profit margin?

9. What is operating income?