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Page < > of 5 ZOOM + Cogswell Cogs 2016 Cogswell Cogs 2016 2016 Pretax Cost of Capital Sales Cost of Goods Sold Gross

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Page < > of 5 ZOOM + Cogswell Cogs 2016 Cogswell Cogs 2016 2016 Pretax Cost of Capital Sales Cost of Goods Sold Gross Profit SGA Depreciation Operating Income (EBIT)) Interest Expense Earnings Before Taxes 15,200 22,800 14,500 $ 38,000 Assets Cash Accounts Receivable Inventory Liabilities and Equity $ 6.500 1,600 Accounts Payable Notes Payable $ 1,200 12.00% 900 4.50% 1,800 Total Current Liabilities 2.100 3.500 Total Current Assets 9,900 Long-Term Debt 22.500 6.50% 4,800 Total Liabilities 24.600 1.200 Fixed Assets, Gross 45,000 3,600 Less Accumulated Depreciation 17.500 Retained Earnings 12,800 15.00% Income Taxi Net Income 540 Fixed Assets, Net 27,500 Total Common Equity 12.800 S 3.060 Total Liabilities and Equity $37.400 Total Assets $ 37,400 Dividends Paid $ 1.200 Change in Retained Earnings $ 1.860 Change in EBIT relative to changes in sales? What is the company's DFL? What is the company's NWC? If 35% of current assets are permanent, is the structure risky or conservative? Calculate WACC

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