For the following Financial statements, assume that COGS is always 70% of Sales, Interest Expense is always 10% of the previous years long term debt, Depreciation is always 20% of the previous years Net Fixed Assets, and taxes are always 40% of EBT.

2010 2011 2012 2013

Net Working Capital 1000 1000 1200 1300

Net Fixed Assets 1500 1600

Long Term Debt 2000 2040 2644

Total Equity 500 460 440 436

2010 2011 2012 2013

Sales 2000 XXXX 3500

COGS 1400

Depreciation 300 300 320

EBIT 300 730

Interest 204 236

EBT 494

Taxes 120 198

NI 296

Capital Expenditures 400 500

Dividends 100 200 300

You do not have to answer each question in order. Fill out the chart above first and then answer the questions. You do NOT need to try to figure out the 2010 Income Statement. There may be more than one way to find the answers

Choose the answer that is CLOSEST to the correct answer.

1. What is 2012 Sales?

a.1820 b. 2112 c. 2360 d. 2680

2. What is Return on Equity in 2011?

a. 6% b. 9% c. 13% d. 17%

3. What is Additional Financing Needed in 2013? (Change in LTD from 2012 to 2013)

a.192 b. 236 c. 284 d.380

4. What is Capital Expenditures in 2011?

a. 100 b. 200 c.300 d.400

5. What is the Fixed Asset Turnover in 2013?

1.5 b. 2 c. 2.5 d. 3