FIN3310: INTERMEDIATE FINANCIAL ANALYSIS SPREADSHEET ASSIGNMENT: Chapter 7 1. Retrieve the file HWChapter7 and solve Problem 7-10, using the organizational design displayed in the worksheet file. Do not modify the fonts, format, or cell addresses. 2. Problem 7-10: Enter equations that solve for the values required in Cells C5, C9, cll, C12, C14, C15, D22. Respond to the question posed by entering either Yes or No in cell E18 3. Print the worksheet Grade Value: 20 points Submission date: THE ASSIGNMENT IS DUE AT THE BEGINNING OF CLASS NO LATE ASSIGNMENTS WILL BE ACCEPTED 1 Problem 7-10 Debt = Interest rate- Interest expense- $600,000 3% 4 6 Sales-$3,000,000 3% Net profit margin - Net income- Tax rate- Taxable income = Taxes- 10 40% 12 13 14 15 16 17 The company's bank requires that the times interest earned ratio must equal 5 or better. 18 Will bankruptcy result (according to the problem)? 19 20 Income Statement 21 EBIT- TIE- Sales $3,000,000 Operating costs* S0 S0 S0 S0 $0 EBIT 23 24 25 26 27 28 29 *Operating costs include depreciation and amortization. Depreciation and amortization 30 charges are not reported in the problem. All variables on the income statement are calculated 31 within the problem, except operating costs. These are obtained by deduction. 32 EBT Net income