Using the spreadsheet information presented, answer the following questions for R&E Supplies

a.	R&E SUPPLIES
	Facts and assumptions ($ thousands)
		Actual	Forecast	Forecast	Forecast	Forecast
		2021	2022	2023	2023 Sensitivity Analysis	2023 Scenario Analysis
	Net sales
	Growth rate in sales		25%	30%		-5%
	Cost of goods sold/net sales		86%	86%	84%	88%
	Gen., sell., and admin. expense/net sales		12%	11%
	Long-term debt	760	660	560
	Current portion long-term debt	100	100	100
	Interest rate		10%	10%
	Tax rate		25%	25%
	Dividend/earnings after tax		50%	50%
	Current assets/net sales		29%	29%		35%
	Net fixed assets		280	270
	Current liabilities/net sales		14.50%	14.40%
	Owners' equity		prior year's equity + addtion to retained earnings

	AQUATIC SUPPLIES CO.
	INCOME STATEMENT ($ millions)
		Actual	Forecast
		2017	2018	2019	2020	2021	2022
	Sales	582.762	652.693	731.017	818.739	916.987	1,027.03
	Cost of Goods Sold	240.828	254.55	285.096	319.308	357.625	400.54
	Gross Profit	341.934	398.143	445.92	499.431	559.362	626.486
	Selling, General, & Administrative Exp.	257.507	319.82	358.198	401.182	449.324	503.243
	Operating Income Before Deprec.	84.427	78.323	87.722	98.249	110.038	123.243
	Depreciation & Amortization	25.221	29.371	32.896	36.843	41.264	46.216
	Operating Profit	59.206	48.952	54.826	61.405	68.774	77.027
	Interest Expense	16.43	18.636	18.801	18.841	18.733	18.446
	Pretax Income	42.776	30.316	36.025	42.564	50.041	58.581
	Total Income Taxes	14.971	10.611	12.609	14.897	17.514	20.503
	Net Income	27.805	19.705	23.416	27.667	32.527	38.078
	BALANCE SHEET ($ millions)
	ASSETS
	Cash & Equivalents	7.152	13.054	14.62	16.375	18.34	20.541
	Account Receivable	70.538	84.85	95.032	106.436	119.208	133.513
	Inventories	39.033	32.635	36.551	40.937	45.849	51.351
	Prepaid Expenses	9.339	9.339	9.339	9.339	9.339	9.339
	Other Current Assets	27.076	39.162	43.861	49.124	55.019	61.622
	Total Current Assets	153.138	179.039	199.403	222.211	247.756	276.366
	Net Property, Plant, & Equipment	81.648	97.904	109.652	122.811	137.548	154.054
	Intangible Assets	9.415	9.415	9.415	9.415	9.415	9.415
	Other Assets	24.642	32.635	36.551	40.937	45.849	51.351
	TOTAL ASSETS	268.843	318.993	355.022	395.374	440.568	491.186
	LIABILITIES
	Accounts Payable	36.951	39.162	43.861	49.124	55.019	61.622
	Accrued Expenses	31.206	32.635	36.551	40.937	45.849	51.351
	Other Current Liabilities	3.663	3.663	3.663	3.663	3.663	3.663
	Total Current Liabilities	71.82	75.459	84.075	93.724	104.532	116.636
	Long Term Debt	157.72	186.363	188.01	188.414	187.327	184.462
	Accrued Wages	21.418	19.581	21.93	24.562	27.51	30.811
	Total Liabilities	250.958	281.403	294.015	306.701	319.368	331.908
	EQUITY
	Common Stock	1.702	1.702	1.702	1.702	1.702	1.702
	Capital Surplus	55.513	55.513	55.513	55.513	55.513	55.513
	Retained Earnings	118.729	138.434	161.851	189.517	222.044	260.122	no dividends
	Less: Treasury Stock	158.059	158.059	158.059	158.059	158.059	158.059
	Total Equity	17.885	37.59	61.007	88.673	121.2	159.278
	TOTAL LIABILITIES & EQUITY	268.843	318.993	355.022	395.374	440.568	491.186