Game Lodge has no preferred stock - only common equity, current liabilities, and long-term debt. The CEO has expressed some interest in bonds and wants to get an estimate on the interest rate. Assume: - expected rate of inflation is expected to be 3% next year, fall to 2% for the following year, and decrease to 1% for each of the following years - r is to remain constant at 2% - maturity risk premium is 0 for next year, and will increase by .10 for each following year, up to a limit of 1.0% 1) The CEO would like to see higher sales and a forecasted net income of $250,000. Assume that operating costs (excluding depreciation) will remain at 55% of sales, depreciation expense will increase by 5%, interest expense will not change, and the tax rate will remain the same. What level of sales would generate $250,000 of net income? Show answer in income statement format. 2) Calculate the following using the financial information from 2019: (round to nearest dollar) a) Accounts Receivable b) Inventory c) Total Current Assets 3) Calculate the rate of interest (r) on the following term bonds: a) 1-year bond b) 5-year bond c) 10 -year bond