Sterling Company is a start-up technology firm that has been experiencing super-normal growth over the past two years. Selected common-size financial information follows:
A．
B．2007 Actual % of Sales
C．2008 Forecast % of Sales
D．Sales
E．100 %
F．100%
F．Cost of goods sold
F．60%
F．55%
F．Selling and administration expenses
F．25%
F．20%
F．Depreciation expense
F．10%
F．10%
F．Net income
F．5%
F．15%
F．Non-cash operating working capital
F．20%
F．25%
F．Non-cash operating working capital = Receivables + Inventory - Payables
F．
F．