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Given the following: Income Balance Revenue $10,000,000 COGS $7,500,000 Gross profit $2,500,000 Total SG&A $1,850,000 EBITDA $650,000 Depreciation $75,000 Interest $75,000 Net profit $500,000 Cash

Given the following: Income Balance Revenue $10,000,000

COGS $7,500,000

Gross profit $2,500,000

Total SG&A $1,850,000

EBITDA $650,000

Depreciation $75,000

Interest $75,000

Net profit $500,000

Cash $200,000 Accounts receivable $1,200,000 Inventory $400,000 Total current assets $1,800,000 Total fixed assets $1,000,000 Total assets $2,800,000 Accounts payable $600,000 Other short term liabilities $200,000 Total short term liabilities $800,000 Total long term debt $600,000 Total liabilities $1,400,000 Total owners equity $1,400,000 Total liabilities & equity $2,800,000 If we are willing to go as high as a Debt to EBITDA ratio of 2 (not counting Accounts Payable), how much additional debt could we assume?

Using our simple approach to calculating funding needs, to increase revenues by 20%, how much additional funding do we need regardless of source?

If gross margin increased by 1% (of revenues) with the same revenues, what would net profit be?

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