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What is sensitivity of financial data analysis? Using this chart answer thes following question. Explain your observations on: o How did adjusting growth rate of

What is sensitivity of financial data analysis?

Using this chart answer thes following question.

Explain your observations on: o How did adjusting growth rate of sale and cost of good sold affect the income statement and Requirements: balance sheet? o What is External Funding Required and how was it affected by adjusting sales projections and cost of goods sold?

Facts and Assumptions
Year 2021 2022 2023
Net sales $65,276 $91,386
Growth rate in sales 40% 50%
Cost of goods sold 89% 86%
Gen., sell,, and admin. Expenses 12% 11%
Long-term debt $540 $540 $540
Current portion long-term debt $59 $59 $59
Interest rate 10% 10%
Tax rate 45% 45%
Dividend/earnings after tax 50% 50%
Current assets 29% 29%
Net fixed assets $61 $61 $61
Current liabilities 14.5% 14.4%
Owners' equity $1,936
INCOME STATEMENT
Year 2021 2022 2023
Net sales $91,386 $91,386
Cost of good sold 81,334 78,592
Gross profit 10,053 12,794
Gen., sell,, and admin. exp. 10,966 10,053
Interest expense 60 1,170
Earnings before tax (974) 1,571
Tax (438) 707
Earnings after tax (536) 864
Dividends paid (268) 432
Additions to retained earnings (268) 432
BALANCE SHEET
Current assets $26,502 $26,502
Net fixed assets 61 61
Total assets 26,563 26,563
Current liabilities 13,251 13,160
Long-term debt 540 540
Equity 1,668 432
Total liabilities and shareholders' equity 15,459 14,132
EXTERNAL FUNDING REQUIRED $11,103 $12,431

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