Widget Products International 2015 2014 Sales Cost of Goods Sold Gross Profit Selling and G&A Expenses Fixed Expenses Depreciation Expense EBIT Interest Expense Earnings Before Taxes 2013 4,300,000 $3,850,000 $3,432,000 3,609,108 $3,250,000 $2,864,000 0,92$600,000 $568,000 334,803$330,300 $240,000 100,000 $100,000 $100,000 25,000 $20,000 $18,900 231,090 $149,700 $209,100 76,000 $62,500 231,090 $73,700 $146,600 43 $29,480 $58,640 $138,654 44,220 87,960 10 Utilize the Iterative process to calculate the required level of "Long Term Debt" needed to eliminate the Discretionary Financing Need 12 17 18 19 Net Income * Forecast 21 Notes: Tax Rate Additional Depreciation Interest Rate 40.00% $5,000 11.70% 40.00% 23 24