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

MUNICH EXPORTS CORPORATION

Balance Sheet 2012 2013

Cash $50,000 $50,000

Accounts Receivables 200,000 300,000

Inventories 450,000 570,000

Total Current Assets 700,000 920,000

Fixed Assets, Net 300,000 380,000

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

Accounts Payable 130,000 $180,000

Accruals 50,000 70,000

Bank Loan 90,000 90,000

Total Current Liabilities 270,000 340,000

Long-Term Debt 400,000 550,000

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

Additional Paid-in-Capital 200,000 200,000

Retained Earnings 80,000 160,000

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 Profit 520,000 640,000

Marketing 130,000 160,000

General & Administrative 150,000 150,000

Depreciation 40,000 55,000

EBIT 200,000 275,000

Interest 45,000 55,000

Earnings Before Taxes 155,000 220,000

Income Taxes (40% rate) 62,000 88,000

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

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