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?

SI Consolidated Income Statements Year Ended December 31, Cost of goods sold in net Selling and administrative Income before income taxes Provision for income taxes Consolidated Balance Sheets ASSETS Property, plant and equipment (net 12,646 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term notes payable Accounts payable Total current liabilities Common stock & additional paidin capital Total stockholders' equity Total liabilities and stockholders' equity $12,646 0 5 23621 6568 9752 3362-0 7 52 6 33 2 4 71 I 37 292 1 344 150 403 4-1-12 T $ 0 33 035 8 21-35 8-23 6 06 1 77 18 997608 2 ,6 4465 3483 0 1 12 354 262 2 38448 472679 20 446 6, 13-14, 2-, 21 1 075 496 , 522 8 42 0 46 7-7 45 4 15 384 376 0 110 2 532 6173 2 4 In