1. The Franklin Dog & Puppy Motel has current Sales of $15,000 and a Profit Margin of 5%. The firm estimates that Sales will increase by 10% while Costs are expected to vary directly with Sales. What is the pro forma Net Income expected to be?
2. 45 years ago, your grandparents invested $3,500 in an account and left it alone. Today, that same account is worth $122,500. What was the compound annual average rate of return earned on this investment?
3. The TruFun Toy Company has $550,000 in Sales and $289,000 in Total Assets. This company is operating at 68% of full capacity. What is the Capital Intensity Ratio at the current level of Sales?