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Intro Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million): Assets Cash Accounts receivable Inventory Current assets Machinary Total assets 32 64 96 192 128 320 Liabilities and Equity Accounts payable 96 Current liabilities 96 Long-term debt 128 Total liabilities 224 Equity 96 Total liab. & equity 320 Income statement Sales Costs Depreciation EBIT Interest Taxable income Taxes Net income 5.98 11.62 Sales, assets and costs (including depreciation) are expected to grow by 26% next year, while the tax rate and long-term debt will stay constant. The company pays out 80% of net income as dividends. Part 1 IB Attempt 1/10 for 10 pts. Using the percentage of sales method, what will be the net income next year (in $ million)? 11+ decimals Intro KLM Inc. has $48,000 in sales and is operating at 93% of capacity. Part 1 Attempt 1/10 for 10 pts. What level of sales can the company have at full capacity? No decimals Submit Intro Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Sales 25 Costs 20 Net income 5 Balance sheet ($ million) Current assets 10.8 Fixed assets 43.2 Total assets 54 Debt Equity Total 16.2 37.8 54 Sales, assets and costs are expected to grow by the same rate next year. The company is expected to pay NO dividends next year. B Attempt 1/10 for 10 pts. Part 1 What is the internal growth rate? 3+ decimals Submit Intro Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Sales 20 Costs 16 Net income 4 Balance sheet ($ million) Current assets 10.6 Fixed assets 42.4 Total assets 53 Debt 15.9 Equity 37.1 Total 53 Sales, assets and costs are expected to grow by the same rate next year, while company expects to keep its debt-equity ratio constant. The company pays out 70% of net income as dividends. Part 1 B Attempt 1/10 for 10 pts. What is the particular growth rate for the next year, at which company will need zero external financing (EFN=0)? What is the sustainable growth rate? 4+ decimals

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