Please use the following information to answer questions 10-11 for the Boilermaker Special Corp. Assume the following: 1) the company was operating at full capacity; 2) profit margin payout ratio remain constant; 3) all current liabilities vary with sales Boilermaker Special Corp Financial Planning Analysis 2016 2017P 20 Sales Costs Net Income 5,500 4,400 1,100 800 Dividends Total Assets Current Liabilities Long-Term Debt Common Stock Retained Earnings 4,800 250 1,200 2,020 800 10) If sales are projected to increase by 20% in 2016, what is the amount external financing needed? a) No external financing is needed. Internally generated cash flows are sufficient to meet operating needs. b) $636 c) $960 d)$1,080 e) $1,280 18) Zhao Corporation has sales of $6,000, total assets of $4,200 and a debt-equity ratio of 0.40. What is the ROE for Zhao Corporation if net income is $450? a) 4.29% b) 26.79% 10.71% d) 20000 1 5% 19) Consider the following: Profit Total Asset Equity ROE Margin- Turnover Mul lier- 13.98% 15.71% 0.64 1.39 > What is the ROA based on the above information? 10.05% b) 2 1.84% c) 88.96% ) 12.46% e) 13.98% 14) You are comparing the financial stafements of a firm to-the pro forma statement for next year. The pro forma is based on a 4 percent increase in sales. The firm is currently operating at 85% capacity. Net working capital and all costs vary directly with sales. The tax rate and dividend true? payout ratio are fixed. Given this information, which one of the following statements must be a) Projected dividends equal the current cash dividend amount b) Depreciation will decrease by 4% c) Retained earnings will increase by 85% of the project income 4 4 ) Total assets will increase by less than 4% e) Total liabilities and owners' equity will increase by 4%