CASE 3: SENERSA SENERSA's balance sheet as of December 31, 2003, consists exclusively of the items listed below, some of whose book value is known (in thousands of euros): net fixed assets, 7,800; inventories; accounts receivable; cash; capital stock (290,000 shares outstanding); reserves, 1,350; long-term debt with suppliers; and short-term loans, 2,550 . Complementary information is available for the same date. The company's sales are evenly distributed throughout the year. Fixed costs (including depreciation) amount to 23,726.7 thousand euros and variable costs represent 63% of sales. The interest rate on long-term debt is 12% (assume that the cost of current liabilities is zero). The tax rate is 40% On the other hand, and also referring to the same date, it is known that the net fixed asset retention ratio is 10.2564 and that the company is operating at maximum production capacity. The acid test is 0.7778 . The average collection period is 11.475 days. The average payment period to its suppliers is 33.75 days. The company buys 20% of its annual sales on credit from its suppliers. The debt ratio (total debt/total liabilities) is 60% while the liquidity ratio (ACPC) is 1.5926 . Issues to be resolved: 1. Complete SENERSA's balance sheet as of December 31 . 2. Glculate the degree of operating leverage at that date. 3. Using the information provided by the GAO, determine how much next year's eamings before interest and taxes would be if sales were to reach 100 million euros