Problem1. Refer to the following
Bacon Signs
2013 Income Statement (000's)
	2013
Net Sales ( All on Credit)	K7,418
COGS	K5,271
Depreciation	K745
EBIT	K1,402
Interest	K305
EBT	K1,097
Taxes (35%)	K384
Net Income	K713
Dividends Paid	K250
Addition to Retained Earnings	K463
Bacon Signs
2012 and 2013 Balance Sheets (000's)
Assets	2012	2013
Cash	K972	K500
A/R	1,680	2,670
Inventory	875	738
Total Current Assets	3,527	3,908
Net Fixed Assets	12,680	K14,155
Total Assets	16,207	18,063
Liabilities	2012	2013
A/P	K725	K1765
N/P	1525	1178
Total Current Liabilities	2250	2943
Long-Term Debt	5000	5500
Common Stock	4000	4200
Retained Earnings	4957	5420
Total Liabilities and Equity	16207	18063

Required:

Analyze the performance of Bacon Signs for the year 2013 using:

Two Liquidity ratio

Inventory Holding period and Average collection period

Debt to asset and debt to equity

Return on Asset, Return on Equity and Net Profit Margin

If Bacon Signs is operating at full capacity and projects to increase sales by 30% in 2014, then determine the additional Funding Needed (AFN) show your workings.