The following income statement data is given to you for 2016 and 2017:

Income Statement		2016	2017
Revenue		150000	165000
COGS		67500	74250
Gross Profit		82500	90750
SG&A		16500	18150
EBITDA		66000	72600
Depreciation		6600	7260
Interest		1000	1000
EBT		58400	64340
Taxes		17520	19302
Net Income		40880	45038

 

Before answering the questions of this exam, you must fill in the first two years of the Excel template. There are some assumptions will be considered:

• Every year, revenue will grow by 10%
• COGS will be 45 percent of the revenue.
• SG&A expenses will be $20,000 for all the years except 2016 and 2017.
• Depreciation will be 5% of revenue for all the years except for 2016 and 2017.
• interest will be $1,000 throughout the years.
• The tax rate will be 30% throughout the years.

For ease of usage and understanding, the assumptions section is prefilled so you can see how it can be filled. Before answering the questions, you must fill in the remaining years and common size balance sheet and answer the questions marked with "?".

On the next page, you can see how you can set up the Excel template. 

 

The following questions should be answered: 

1. What is the largest EBITDA Percentage when you prepare the common size statement? State the formula that can be entered in cell D36.
2. What is the minimum percentage of Tax paid when you prepared the common size statement? State the formula that can be entered in cell D37.
3. Using the common-size income statement, what is the average net income percentage? State the formula that can be entered in the cell at D38.
4. What is the Second Largest EBT percentage using the common size income statement? State the formula that can be entered in cell D39.