responses should be rounded to the nearest dollar. Company A has the current income statement below. Remember to show all your calculations for each question. Assuming a projected increase in sales of 12% annually, a gross profit margin this y of 19.23%, an operating profit margin this year of 16.31% and a called dividend each year of 16% after tax earnings, (1) complete the income statement below; (3 points) (2) prepare two subsequent years of pro formas; (6 points)

(3) what is the gross profit margin for year 2? (1 point) (4) what is the operating profit margin for year 2? (1 points) (5) what is the gross profit margin for year 3? (1 point) (6) what is the operating profit margin for year 3? (1 point) (7) what is the compound annual growth rate of dividends from year 1 to year 3? (3 points) (8) What is the growth rate of the company's after tax earnings from y

ear 1 to 3? (3 points) (9) If the company too 45% of this year's net profits after taxes and invested in a new line of busine ...ith anticinated anah flan of trn er 03$75.000 d. 600 000

(9) If the company too 45% of this year's net profits after taxes and invested in a new line with anticipated cash flows of $60,000,$65,000,$75,000 and $90,000 over the next four y assuming a 10% discount rate, what is the projects NPV? (3 points) (10) Would you recommend the project considered in question 9 above? Why or why no Income Statement of Company A Sales Revenue $4,396,223 Less COGS Fixed Costs Variable costs (42\%) Gross Profits Less Operating Expenses Fixed Expenses Variable Expenses (2.8\%) Operating Profits (9) If the company too 45% of this year's net profits after taxes and invested in a new line of business with anticipated cash flows of $60,000,$65,000,$75,000 and $90,000 over the next four years, assuming a 10% discount rate, what is the projects NPV? (3 points) (10) Would you recommend the project considered in question 9 above? Why or why not? (1 point) Income Statement of Company A Sales Revenue $4,396,223 Less COGS Fixed Costs Variable costs (42%) Gross Profits Less Operating Expenses Fixed Expenses Variable Expenses (2.8\%) Operating Profits (9) If the company too 45% of this year's net profits after taxes and invested in a new line with anticipated cash flows of $60,000,$65,000,$75,000 and $90,000 over the next four y assuming a 10% discount rate, what is the projects NPV? (3 points) (10) Would you recommend the project considered in question 9 above? Why or why no Income Statement of Company A Sales Revenue $4,396,223 Less COGS Fixed Costs Variable costs (42\%) Gross Profits Less Operating Expenses Fixed Expenses Variable Expenses (2.8\%) Operating Profits (9) If the company too 45% of this year's net profits after taxes and invested in a new line of business with anticipated cash flows of $60,000,$65,000,$75,000 and $90,000 over the next four years, assuming a 10% discount rate, what is the projects NPV? (3 points) (10) Would you recommend the project considered in question 9 above? Why or why not? (1 point) Income Statement of Company A Sales Revenue $4,396,223 Less COGS Fixed Costs Variable costs (42%) Gross Profits Less Operating Expenses Fixed Expenses Variable Expenses (2.8\%) Operating Profits