Austin Logo Inc. owns and operates a small chain of sportswear stores located near colleges and universities. Austin has experienced significant growth in recent years. The following data are available for Austin:
Austin Logo Inc.
Consolidated Income Statements
(In thousands)

Austin Logo Inc.
Consolidated Balance Sheets
(In thousands)

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

Year ended December 31, 2019 2018 2017 $54,922 32,936 $21,986 $42,893 25,682 $17,211 $35,526 21,721 $13,805 421 Sales Cost of goods sold Gross margin Other income, net 397 439 $22,383 $17,650 $14,226 Costs and expenses: Selling and administrative Interest $17,857 1,356 $19,213 $ 3,170 $14,665 863 $15,528 $ 2,122 $12,754 622 $13,376 Income before income taxes 850 Provision for income taxes 885 746 623 $ 2,285 $ 1,376 227 Net income December 31, 2018 ASSETS 2019 2017 Current assets: Cash Accounts receivable $ 372 4,798 Inventories Total current assets Property, plant, and equipment (net) Other assets Total assets 301 3,546 4,521 $ 8,368 3,541 592 245 3,369 3,389 $ 7,003 2,937 552 $10,492 5,673 510,843 4,912 592 $16,347 $12,501