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Part II Gilman Trading Company shows the following extracted financial information in its 2020 income...

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Finance

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Part II Gilman Trading Company shows the following extracted financial information in its 2020 income statement: Sales Costs of goods sold General and Administrative expenses Depreciation Interest expenses Taxes Dividends paid $ 3,178,000 2,114,000 185,000 312,000 21,000 186,000 120,000 In addition, the firm issued $45,000 new stock during 2020, and redeemed $65,000 outstanding long-term debts. The year-end balance of the company's total assets and total equity in 2020 are $2,750,000 and $1,600,000 respectively. Required: (a) Compute the net income (NI) and operating cash flow (OCF) for the company, (5 marks) Question 1 (continued) (b) Determine the amount of cash flow to creditors, cash flow to stockholders and cash flow from assets (CFFA) for the company. (4 marks) (c) Compute the return on equity (ROE) of the company in the year 2020. (answer in %] (2 marks) (Smarks) (d) Estimate the internal growth rate of Gilman in 2020. (e) Judge, without computation, whether the internal growth rate should be higher or lower than the sustainable growth rate of Gilman in 2020 [within 20 words). (2 marks)

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