It is argued that Growth Industries' financial challenges involve high-interest rate, short-term borrowing. Use the information in Growth Industries' Income Statement and Balance Sheet (Table 14.9, also in slides) to find the $ increase in short-term debt from 2016 to 2017 and the interest rate paid on that short-term debt in 2017.

TABLE 14.9 Growth Industries financial statements ($ thousand) 2014 2015 2016 2017 Income statements Sales revenue Cost of goods sold (including depreciation) Depreciation Selling and administrative expenses Operating income Interest expense Taxable income Income tax (40% rate) Net income Balance sheets (end of year) Cash and marketable securities Accounts receivable $100,000 55,000 15,000 15,000 $ 30,000 10,500 $ 19,500 7,800 $ 11,700 $120,000 $ 66,000 18.000 18.000 $ 36,000 19,095 $ 16,905 6,762 $ 10,143 $144,000 $ 79,200 21,600 21.600 $ 43,200 34,391 $ 8.809 3,524 $ 5,285 Inventories Net plant and equipment Total assets Accounts payable Short-term debt Long-term debt (8% bonds maturing in 2030) Total liabilities $ 50,000 25,000 75.000 150,000 $300,000 $ 30.000 45,000 75,000 $150,000 $150,000 $ 60,000 30,000 90,000 180.000 $360,000 $ 36,000 87,300 75,000 $198,300 $161,700 $ 72,000 36.000 108.000 216.000 $432,000 $ 43,200 141,957 75,000 $260,157 $171,843 $ 86.400 43,200 129.600 259,200 $518,400 $ 51,840 214,432 75,000 $341,272 $177,128 Shareholders' equity (1 million shares outstanding) Other data Market price per common share at year-end $ 93.60 $ 61.00 $ 21.00