The most recent financial statements for Live Co. are shown here (Do not include
ID: 2683165 • Letter: T
Question
The most recent financial statements for Live Co. are shown here (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)):
Income Statement Balance Sheet
Sales $11,200 Current assets $11,905 Debt $23,802
Costs
7,392
Fixed assets 29,145 Equity 17,248
Taxable income $3,808 Total
$41,050
Total
$41,050
Taxes (34%) 1,295
Net income
$2,513
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 28 percent dividend payout ratio. No external financing is possible. The internal growth rate is therefore percent.
I'm just confused if I have to make a pro forma statement to do this or not.
Explanation / Answer
internal growth is measured by net income /assets as initially you are having current assets and from that current assets you generated income => 2513/11905 = 0.2118 =21.18% threfore internal growth = 21.18%