Following are two years of income statements and balance sheets for the Munich Exports Corporation.

MUNICH EXPORTS CORPORATION

Balance Sheet20122013

Cash$50,000$50,000

Accounts Receivables200,000300,000

Inventories450,000570,000

Total Current Assets700,000920,000

Fixed Assets, Net300,000380,000

Total Assets$1,000,000$1,300,000

Accounts Payable130,000$180,000

Accruals50,00070,000

Bank Loan90,00090,000

Total Current Liabilities 270,000340,000

Long-Term Debt400,000550,000

Common Stock ($.05 par) 50,00050,000

Additional Paid-in-Capital 200,000200,000

Retained Earnings80,000160,000

Total Liab. & Equity$1,000,000$1,300,000

Income Statement 2012 2013

Net Sales$1,300,000$1,600,000

Cost of Goods Sold 780,000 960,000

Gross Profit520,000 640,000

Marketing130,000 160,000

General & Administrative150,000 150,000

Depreciation40,00055,000

EBIT200,000 275,000

Interest45,000 55,000

Earnings Before Taxes155,000220,000

Income Taxes (40% rate)62,00088,000

Net Income$93,000$132,000

48.Using the financial statements for Munich Exports above, calculate the cash build for Munich Exports in 2013.

a. $1300

b. $1500

c. $1700

d. $1600

49.Using the financial statements for Munich Exports shown above, calculate the cash burn (note, not the net cash burn) for Munich Exports in 2013.

a. $1668

b. $1455

c. $1718

d. $1598

50.A trade secret can potentially last ___________ if secrecy is maintained.

a.Forever

b.Life of Author + 70 years unless a work for hire

c.20 years from the date of filing

d.15 years from the date of grant

e.None of the above