Four equal debt payments should be made so that debt is paid off in year 4, treasury stock is the plug and CAPX spending replenishes any yearly asset depreciation only, the average life of assets is 8 years. use averages for interest and depreciation.

A B D E F 1 YOU MUST USE THIS TEMPLATE EXACTLY AS PROVIDED -- NO OTHER WORK WILL BE ACCEPTED! 2 Sales growth 20% 3 COGS/sales 65% 4 Current liabilities/sales 20% 5 Current assets/sales 20% 6 Interest rate rcvd on cash and marketable securities 10% 7 Interest rate paid on debt 8% 8 Stock account (at par) 450 9 Earnings retention ratio 30% 10 Tax rate 28% 11 Reserved for additional input(s) 0 1 2 3 4 5 1,000 13 Year 14 Income statement 15 Sales 16 COGS 17 Depreciation 18 EBIT 19 Interest, net 20 EBT 21 Taxes 22 Net Income 23 Dividends paid 24 To retained earnings 50 160 1,090 (300) 790 1,000 26 Balance sheet 27 Cash and marketable securities 28 Current assets 29 Gross fixed assets 30 Less depreciation 31 Net fixed assets 32 Total assets 33 34 Current liabilities 35 Debt 36 Stock 37 Treasury stock 38 Retained earnings 39 Liabilities and shareholder equity 80 320 450 0 150 1,000 A B D E F 1 YOU MUST USE THIS TEMPLATE EXACTLY AS PROVIDED -- NO OTHER WORK WILL BE ACCEPTED! 2 Sales growth 20% 3 COGS/sales 65% 4 Current liabilities/sales 20% 5 Current assets/sales 20% 6 Interest rate rcvd on cash and marketable securities 10% 7 Interest rate paid on debt 8% 8 Stock account (at par) 450 9 Earnings retention ratio 30% 10 Tax rate 28% 11 Reserved for additional input(s) 0 1 2 3 4 5 1,000 13 Year 14 Income statement 15 Sales 16 COGS 17 Depreciation 18 EBIT 19 Interest, net 20 EBT 21 Taxes 22 Net Income 23 Dividends paid 24 To retained earnings 50 160 1,090 (300) 790 1,000 26 Balance sheet 27 Cash and marketable securities 28 Current assets 29 Gross fixed assets 30 Less depreciation 31 Net fixed assets 32 Total assets 33 34 Current liabilities 35 Debt 36 Stock 37 Treasury stock 38 Retained earnings 39 Liabilities and shareholder equity 80 320 450 0 150 1,000