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2018 2019 2020 2021 2022 2023 Income Statement $(000s) Sales Cost of Goods Sold EBITDA Depreciation EBIT Interest Expense Pre-tax Income Taxes Net Income $74,899 58,421 $16,478 5,486 $10,992 306 $10,686 3,740 $6,946 $88,277 68,856 $19,421 7,446 $11,975 306 $11,669 4,084 $7,585 $103,239 80,526 $22,713 7,500 $15,213 1,666 $13,547 4,741 $8,806 $119,949 93,560 $26,389 7,574 $18,815 1,666 $17,149 6,002 $11,147 $138,164 107,768 $30,396 7,605 $22,791 1,666 $21,125 7,394 $13,731 $158,508 123,636 $34,872 7,654 $27,218 1,666 $25,552 8,943 $16,609 Payout Ratio Additions to shareholder equity Beginning shareholder equity 30% $4,862 $5,310 74,134 $6,164 79,444 $7,803 85,608 $9,612 93,411 $11,626 103,023 Given the information in the table on KXS B , did KXS's expansion plan call for it to grow slower or faster than its sustainable growth rate? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The actual growth rate for 2019 is %. (Round to two decimal places.) 2018 2019 2020 2021 2022 2023 Income Statement $(000s) Sales Cost of Goods Sold EBITDA Depreciation EBIT Interest Expense Pre-tax Income Taxes Net Income $74,899 58,421 $16,478 5,486 $10,992 306 $10,686 3,740 $6,946 $88,277 68,856 $19,421 7,446 $11,975 306 $11,669 4,084 $7,585 $103,239 80,526 $22,713 7,500 $15,213 1,666 $13,547 4,741 $8,806 $119,949 93,560 $26,389 7,574 $18,815 1,666 $17,149 6,002 $11,147 $138,164 107,768 $30,396 7,605 $22,791 1,666 $21,125 7,394 $13,731 $158,508 123,636 $34,872 7,654 $27,218 1,666 $25,552 8,943 $16,609 Payout Ratio Additions to shareholder equity Beginning shareholder equity 30% $4,862 $5,310 74,134 $6,164 79,444 $7,803 85,608 $9,612 93,411 $11,626 103,023 Given the information in the table on KXS B , did KXS's expansion plan call for it to grow slower or faster than its sustainable growth rate? The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career. The actual growth rate for 2019 is %. (Round to two decimal places.)

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