Use the following information for all Parts of the test.

Financial statements:

Income statement for the year ending 12/31/2021

Sales/revenues	1,750
Variable cost a.k.a. cost of goods sold (COGS)	(700)
Fixed cost a.k.a. selling general and administrative (SG&A)	(400)
Depreciation	(100)
EBIT	550
Interest expense	(100)
EBT	450
Taxes (40%)	(180)
Net Income	270

The NI belongs to the stockholders, assume that half is paid out in dividends and the rest is added to retained earnings.

- Dividends 135 (50% of net income in this case)

- Additions to retained earnings 135 (net income minus dividends)

Balance sheet on 12/31/2021:

Cash	100	A/P	200
A/R	150	Accruals	125
Inventory	250	Notes payable	100
Fixed assets	1,500	Long term debt	725
		Common stock	50
		Retained earning	800
Total assets	2,000	Total claims	2,000

Part 1.

Calculate the return on assets

Part 2.

Calculate the return on equity

Part 3.

Calculate the market to book ratio

Part 4.

Calculate the times interest earned

Part 5.

Calculate the price to earnings ratio

Part 6.

Calculate the current ratio

Part 7.

Calculate quick ratio

Part 8.

Assume that the company is forecasting a 15% growth rate for next year. Calculate the additions to retained earnings.

Part 9.

Using the information in Part 8 above, calculate the proforma or forecasted total assets for next year.

Part 10.

Using the information in Parts 8 and 9 above, calculate the additional or external funds needed.