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This question was created from Financial Management Mock Exam questions.docx https://www.coursehero.com/file/30689058/Financial-Management-Mock-Exam-questionsdocx/

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Income Statements: 2019 2019 Historical ratios Forecasting basis 2020 Input ratios 2020 Preliminary forecast (doesn't include special dividend or LOC) 2020 Final forecast (includes special dividend or LOC) (December 31, in thousands of dollars) Sales $455,150 Growth Expenses (excluding depr. & amort.) $386,878 % of sales Depreciation and Amortization $14,565 % of fixed assets EBIT $53,708 Interest expense on long-term debt $11,880 Interest rate x average debt during year Interest expense on line of credit $0 EBT $41,828 Taxes (25%) $10,457 Net Income $25,097 Common dividends (regular dividends) $12,554 Growth Special dividends Zero in preliminary forecast Addition to retained earnings $12,543

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