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Problem # 1 . The numbers in column D are rates that apply to each line item. - i . e . D 1 3
Problem # The numbers in column D are rates that apply to each line item. ie D represents the annual depreciation rate. The depreciation during the observation period can be calculated using this rate. Likewise, D represents the WAVG overall interest rate on the LT debt of the company. In the Income Statement, CGS is of a typical retail business, not manufacture. Depreciation in G must correspond to the depreciation in the balance sheet. Numbers in column I are ratios of the corresponding line items which are fractions marked to the sales revenue. Accordingly, I represents tax rate.
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