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Questions 17-20 use the following Financial statements. Assume that COGS is always 70% of Sales, Interest Expense is always 10% of the previous years long term debt, Depreciation is always 20% of the previous years Net Fixed Assets, and taxes are always 40% of EBT.

2012        2013        2014        2015

Net Working Capital        1000        1000        1200        1300

Net Fixed Assets           1500                    1600       

Long Term Debt                 2000        2040                    2644

Total Equity               500        460        440         436

                        2012        2013        2014        2015

Sales                    xxx         2000                    3500

COGS                   xxx         1400                    2450

Depreciation              xxx         300        300         320

EBIT                    xxx         300                    730

Interest                   xxx                    204         236

EBT                     xxx                                 494

Taxes                    xxx                     120         198 

NI                      xxx                                  296

Capital Expenditures                                400         500

Dividends                            100         200         300

You do not have to answer each question in order. Fill out the chart above first and then answer the questions. You do NOT need to try to figure out the 2012 Income Statement. There may be more than one way to find the answers

Choose the answer that is CLOSEST to the correct answer.

17. What is 2014 Sales?

         a.1820          b. 2112                   c. 2360          d. 2680

19. What is Capital Expenditures in 2013?

      a. 100       b. 200       c.300        d.400

20. What is the Fixed Asset Turnover in 2015?

1.5          b. 2         c. 2.5        d. 3

Solution
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Finance 3 Months Ago 22 Views
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