BBB company has $54 million of current assets and $58 million of noncurrent assets. It forecasts an EBIT of $10.4 million and pays income taxes at a 35% rate. Short-term bank notes carry a 5% interest rate, and the company can issue long-term bonds at 7%. The company has set a target debt ratio of 45%.
Required:
	B. For a maturity mix of 60% current and 40% long-term debt, prepare the company's financial half of its income statement.
	C. Based on the financial statements above, calculate the return on equity ratio in order to evaluate the company's risk and return.
	D. Based on the financial statements above, calculate the current ratio in order to evaluate the company's risk and return.
Your answers to this open-ended assignment should be placed in the space below this line.
B	EBIT
	Interest on current liabilities
	Interest on noncurrent debt
	Total interest
	Earnings before taxes
	Income taxes
	Net income