Complete the following three problems. For assistance you may want to refer to t

Complete the following three problems. For assistance you may want to refer to these examples: Week 10 Example Problems.doc.Required:Total assets$100000Debt (12% interest rate)$80000Equity$20000Variable costs of production$14 per unitFixed cost of production$27000Units Sold12300Sales price$19.75 per unitWhat happens to operating income and net income if output is increased by 10 percent? Verify your answer.Sales$200Expenses$185Tax rate33% of earningsAssets Liabilities and Equity as of xx/xx/xxAssetsLiabilities and EquityAccounts receivable$1300Accounts payable$1200Inventory1600Long-term debt2500Plant1700Equity900Total$4600Total$4600The firm earns 20 percent on sales and expects those sales to rise to $5500. The increased sales may require additional financing. Accounts receivable and inventory will increase and trade accounts will also spontaneously increase with the increase in sales. Management expects to distribute 75% of earnings.