Question

Gilsig Inc. owns and operates a small chain of sportswear stores located near colleges and universities. Gilsig has experienced significant growth in recent years. The following data are available for Gilsig:

Required:
1. Determine how much Gilsig’s sales, net income, and assets have grown during these three years.
2. Explain how Gilsig has financed the increase in assets.
3. Determine whether Gilsig’s liquidity is adequate.
4. Explain why interest expense is growing.
5. If Gilsig’s sales grow by 25 percent in 2012, what would you expect net income to be?
6. If Gilsig’s assets must grow by 25 percent to support the 25 percent sales increase and if 50 percent of net income is paid in dividends, how much capital must Gilsig raise in 2012?


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  • CreatedSeptember 22, 2015
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