Question: Based on the following preform a assumption for 2007 should Mr. Dougall provide a loan of $200000 to fis for a warehouse expansion that the

Based on the following preform a assumption for 2007 should Mr. Dougall provide a loan of $200000 to fis for a warehouse expansion that the company was planning to undertake by the beginning of November 2006. Provide your reasoning. Give a detailed discussion.left to right 2004 2005 Sales Growth COGS as (%) of Sales 69.26% 73.24% 71.45% 15.87% 1.39% 14.81% 0.54% Wages and Commission

AY 4 Insert Delete Format Conditional Format as Formatting Table Styles Cell Styles Sort & Find & Filter Select Ideas Cells E

Net Sales COGS Gross Profit 930110 1599920 2066820 644190 1171760 1476840 285920 428160 589980 253910 22200 306170 11100 Wage

Proforma Income Statement as of Jan 2007 Net Sales COGS Gross Profit 2800000 2000600 799400 Wages and Commissions Rent Provis

eft to right Sales Growth COGS as (%) of Sales Wages and Commissions as (%) of Sales Rent (%) Provision for doubtful accounts (%) General Selling Exp(%) General Admin Exp (%) Amortization ($) Interest Exp Income tax cash as (%) of Sales ACP days Inventory Days GFA Accumulated amortization Acc Payable 2004 69.26% 73.24% 71.45% 19.74% 15.87% 2.09% 1.39% 0.72% 3.13% 1.72% 8.22% 6.55% 10300 2.93% 2005 14.40% 105 175 34350 30.90% 1.83% 2.81% 91 101 2006 34350 10300 46.73% 14.81% 0.54% 1.15% 6.43% 24360 1.63% 0.14% 124 101 235660 34660 47.85%

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