MUNICH EXPORTS CORPORATION BALANCE SHEET 2009 2010 Cash $ 50,000 $ 50,000 Accounts receivable 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 BALANCE SHEET 2009 2010 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 ($0.05 par) 50,000 50,000 Additional paid-in-capital 200,000 200,000 Retained earnings 80,000 160,000 Total liabilities and equity $1,000,000 $1,300,0002009 2010 Income Statement 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 and 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