The most recent financial statements for Drennan Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 75,300 Current assets $ 27,000 Debt $ 37,200 Costs 55,380 Fixed assets 89,300 Equity 79,100 Taxable...

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Finance

The most recent financial statements for Drennan ManufacturingCo. are shown below:
Income Statement Balance Sheet
  Sales $ 75,300   Current assets $ 27,000   Debt $ 37,200
  Costs 55,380   Fixed assets 89,300   Equity 79,100
  Taxable income $ 19,920      Total $ 116,300      Total $ 116,300
  Tax (40%) 7,968
  Net Income $ 11,952
Assets and costs are proportional to sales. Debt and equity arenot. The company maintains a constant 25 percent dividend payoutratio. No external financing is possible.
Required:
What is the internal growth rate? (Donot round intermediate calculations. Round youranswer to 2 decimal places (e.g., 32.16).)
  Internal growth rate %
The most recent financial statements for Drennan ManufacturingCo. are shown below:
Income Statement Balance Sheet
  Sales $ 75,300   Current assets $ 27,000   Debt $ 37,200
  Costs 55,380   Fixed assets 89,300   Equity 79,100
  Taxable income $ 19,920      Total $ 116,300      Total $ 116,300
  Tax (40%) 7,968
  Net Income $ 11,952
Assets and costs are proportional to sales. Debt and equity arenot. The company maintains a constant 25 percent dividend payoutratio. No external equity financing is possible.
Required:
What is the sustainable growth rate?(Do not round intermediatecalculations. Round your answer to 2 decimalplaces (e.g., 32.16).)
  Sustainable growth rate    %

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Answer to Question 1 Return on Assets Net Income Total Assets Return on Assets 11952 116300 Return on Assets 010277 or 10277 Retention Ratio 1 Payout Ratio See Answer

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The most recent financial statements for Drennan ManufacturingCo. are shown below:Income StatementBalance Sheet Sales$75,300 Current assets$27,000 Debt$37,200 Costs55,380 Fixed assets89,300 Equity79,100 Taxable income$19,920 Total$116,300 Total$116,300 Tax (40%)7,968 Net Income$11,952Assets and costs are proportional to sales. Debt and equity arenot. The company maintains a constant 25 percent dividend payoutratio. No external financing is possible.Required:What is the internal growth rate? (Donot round intermediate calculations. Round youranswer to 2 decimal places (e.g., 32.16).) Internal growth rate%The most recent financial statements for Drennan ManufacturingCo. are shown below:Income StatementBalance Sheet Sales$75,300 Current assets$27,000 Debt$37,200 Costs55,380 Fixed assets89,300 Equity79,100 Taxable income$19,920 Total$116,300 Total$116,300 Tax (40%)7,968 Net Income$11,952Assets and costs are proportional to sales. Debt and equity arenot. The company maintains a constant 25 percent dividend payoutratio. No external equity financing is possible.Required:What is the sustainable growth rate?(Do not round intermediatecalculations. Round your answer to 2 decimalplaces (e.g., 32.16).) Sustainable growth rate %

Income Statement			Balance Sheet
Sales	$	75,300	Current assets	$	27,000	Debt	$	37,200
Costs		55,380	Fixed assets		89,300	Equity		79,100

Taxable income	$	19,920	Total	$	116,300	Total	$	116,300

Tax (40%)		7,968

Net Income	$	11,952