Problem 1 (36 marks) Rosebush Flowers Inc. operates a number of flower shops in Halifax. The firm is considering an expansion project in Dartmouth Crossing. Below is their most recent set of financial statements. Rosebush Flowers Inc. Balance Sheet Assets Cash A/R Inventory Liabilities $69,921 Accounts Payable $52,818 Accrued Liabilities $31,333 $18,667 $137,661 Long Term Debt (8% coupon,semiannual pmts $100,000 Net Property, Plant and Equipemen $139,600 $1000 par, 15 years to maturity) Preferred Shares (Par $50, dividend 7%) $50,000 Common Stock (44,000 shares outstanding)$100,000 $100,000 Retained Earnings Total Assets $400,000 Total Liabilities&Owers Equity $400,000 Rosebush Flowers Inc. Income Statement Sales Cost of Goods Sold Gross Margin $739,100 $24500 $494,100 $320,000 $6.000 Fixed Costs Depreciation Earnings before interest and taxes Interest Earnings before taxes Taxes (35%) Net Income $168,100 $8.000 $160,100 $56.035 $104,065 Dividends -Preferred $3,500