Use the following financial statement information for the next two questions. The bank loan will be used to provide the external funds needed. Growth Rate 20% Interest Expense 265 Tax Rate Dividend 2018 2019 2020 Cash 540 396 Accounts receivable 8,640 11,250 Inventory 10,098 12,546 Prepaids 360 612 Net PP&E 1,926 2,160 Gross PP&E 3,366 3,888 Accum Dep (1,440) (1,728) Total Assets 21,564 26,964 Bank loan 4,986 6,120 Accounts payable 6,300 10,422 Misc. accruals 1,008 612 Mortgage 864 828 Equity 8,406 8,982 Total Debt and Equity 21,564 26,964 Sales 54,450 68,220 Cost of goods sold 44,640 56,628 Gross Profit 9,810 11,592 Operating expenses Selling expense 4,176 5,058 Salaries 2,466 2,952 General expenses 1,038 1,206 Total 7,680 9,216 EBITDA 2,130 2,376 Depreciation 216 288 EBIT 1,914 2,088 Interest 534 630 Earnings before tax 1,380 1,458 Tax 504 522 Net income 876 936 Free Cash Flows to Firm