Twisted Company owns and operates a small chain of pretzel stands located near colleges and universities. Twisted has experienced significant growth in recent years. The following data are available for Twisted:
Twisted Company
Consolidated Income Statements
(In thousands)

Twisted Company
Consolidated Balance Sheets
(In thousands)

Required:
1. Determine how much Twisted's sales, net income, and assets have grown during these 3 years.
2. Explain how Twisted has financed the increase in assets.
3. Determine whether Twisted's liquidity is adequate.
4. Explain why interest expense is growing.
5. If Twisted's sales grow by 25% in 2020, what would you expect net income to be?
6. If Twisted's assets must grow by 25% to support the 25% sales increase and if 50% of net income is paid in dividends, how much capital must Twisted raise in 2020?

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Year ended December 31, 2019 2018 2017 Sales $51,638 31,050 $20,588 $41,310 24,840 $16,470 $34,425 20,700 $13,725 Cost of goods sold Gross margin Other income, net 426 383 405 $20,971 $16,896 $14,130 Costs and expenses: Selling and administrative $16,570 1,237 $17,807 $ 3,164 $13,465 765 $14,230 $ 2,666 746 $ 1,920 $11,350 Interest 554 $11,904 Total costs and expenses Income before income taxes $ 2,226 623 Provision for income taxes 885 $ 1,603 $ 2,279 Net income December 31, 2019 2018 2017 ASSETS Current assets: Cash Accounts receivable 360 293 236 4,658 6,064 $11,082 4,860 3,690 4,478 $ 8,461 3,600 585 3,285 3,442 $ 6,963 2,756 Inventories Total current assets Property, plant, and equipment (net) Other assets 574 562 Total assets $16,516 $12,646 $10,281 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: $ 4,230 1,147 $ 5,377 3,150 $ 8,527 $ 4,725 3,264 $ 7,989 $16,516 $ 1,620 1,013 $ 2,633 3,150 $ 5,783 $ 4,725 2,138 $ 6,863 $12,646 $ 450 Short-tem notes payable Accounts payable Total current liabilities Long-term debt Total liabilities 720 Common stock & additional paid-in capital Retained eamings Total stockholders' equity Total liabilities and stockholders' equity $ 1,170 3,150 $ 4,320 $ 4,725 1,236 $ 5,961 $10,281