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increase to $ 2,000,000 to help finance the plant expansion and add $ 1,137,150 to other LT debt .. You will now have balance sheets for 2015 and 2016 for ICS Manufacturing .
Using the 2015 and 2016 financials for ICS , complete the following – show calculations and / or numbers you used to derive your answer :
3 . ICS wants to take around $ 400,000 of its cash and invest in marketable securities . They anticipate receiving around $ 7.5 % interest on their investment and would like to have it held for 10 years . What will be the FV of this $ 400,000 investment ?
4 . ICS believes they will only gain a 6 % return on their $ 400,000 investment . Using the Rule of 72 , how many years will it take to double their investment ?
5 . ICS plans on expanding their plant and will fund $ 2,000,000 . Part of the funding will come from cash , but the balance of $ 775,000 will be financed . The interest rate will be 5 % and ICS plans on borrowing the funds for 4 years . Prepare a loan amortization schedule for the 4 years with 5 % interest for the $ 775,000 and assume making one payment per year . Show the schedule .
6 . Using your 2015 / 2016 Income Statement and Balance Sheet , add a column for percentage of total . Compute the percentages for each line item for the financial statements . For the 2015 Income Statement , what is the percentage of COGS as compared to total sales ? Is this figure reasonable and what is COGS and why is it important to a company ?
7 . Financial Ratios provide information to analyze a company ’ s performance . Solve the following ratios for 2015 and 2016 using the