Question

Income Statement Net Sales 272,500 Net Earnings 32,000 Balance Sheet Shareholders Equity 132,500 Statement of Cash...

Income Statement

Net Sales 272,500

Net Earnings 32,000

Balance Sheet

Shareholders Equity 132,500

Statement of Cash Flow

Dividends to Shareholders 19,600

What is the sustainable growth rate? Show formula

0 0
Add a comment Improve this question Transcribed image text
Answer #1

sustainable growth rate

retention ratio*return on equity

38.75%*24.15%

9.36%

retention ratio

(net income-dividend paid)/net income

(32000-19600)/32000

38.75%

return on equity

net income/total of equity

32000/132500

24.15%

Add a comment
Know the answer?
Add Answer to:
Income Statement Net Sales 272,500 Net Earnings 32,000 Balance Sheet Shareholders Equity 132,500 Statement of Cash...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • The income statement and balance sheet for GUS, Inc. are provided below. (Note that the reported...

    The income statement and balance sheet for GUS, Inc. are provided below. (Note that the reported figures in the statements are expressed in thousands of dollars.) GUS, INC. Balance Sheets as of December 31, 2018 and 2019 (in 000s) 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 100 $ 175 Accounts payable $ 300 $ 380 Accounts receivable 300 275 Notes payable 500 560 Inventory 450 500 Total $ 850 $ 950 Total...

  • Perine, Inc., has balance sheet equity of $6.2 million. At the same time, the income statement...

    Perine, Inc., has balance sheet equity of $6.2 million. At the same time, the income statement shows net income of $948,600. The company paid dividends of $493,272 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 26, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate.

  • c. Income Statement, Statement of Equity, Balance Sheet, Statement of Cash Flow d. Statement of Cash...

    c. Income Statement, Statement of Equity, Balance Sheet, Statement of Cash Flow d. Statement of Cash Flows, Income Statement, Statement of Equity, Balance Sheet QUESTION 22 USE THIS INFORMATION TO ANSWER PARTS I, II, & III Advertising Expense $33,500 Service Revenue $127,600 Buildings $150,000 Interest Expense $ 3,500 Salaries Expense $ 65,000 Utilities Expense $ 15,500 Accounts Payable $ 6,400 Equipment $ 27,000 Cash $ 5,500 Notes Payable $30,000 The Company had Common Stock of $100,000 at the beginning of...

  • Net income appears on the Income Statement and Balance Sheet. Statement of Retained Earnings and Balance...

    Net income appears on the Income Statement and Balance Sheet. Statement of Retained Earnings and Balance Sheet. O Income Statement and Statement of Retained Earnings. Balance Sheet and Statement of Cash Flows.

  • Identify the financial statement: Balance Sheet, Statement of Shareholders’ Equity, Income Statement or Statement of Cash...

    Identify the financial statement: Balance Sheet, Statement of Shareholders’ Equity, Income Statement or Statement of Cash Flows. 1. The amount of cash the business generated from selling its products during the most recent business year. 2. The amount of expenses the firm incurred in its most recent month of operation. 3. The total amount of equipment owned by the firm on December 31. 4. The amount of money invested into the corporation by shareholders during the last business year.

  • Based on the Income Statement and Balance Sheet for the XYZ Corporation (see below):     a)   ...

    Based on the Income Statement and Balance Sheet for the XYZ Corporation (see below):     a)    create the Pro Forma statement for 2018 given the following assumptions: - sales increase by 20% - all items vary directly with sales (except for Notes Payable, LTD, Owners Equity) - the company is currently operating at 100% capacity - the dividend payout ratio stays at 50%     Income Statement 2017 Pro Forma 2018 Sales $3,000,000 Cost of Goods Sold 2,000,000 Depreciation 300,000 EBIT...

  • PA1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet [LO2) You are the...

    PA1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet [LO2) You are the president of High Power Corporation. At the end of the first year of operations (December 31, 2017), the following financial data for the company are available: Cash Accounts Receivable Supplies Equipment Accounts Payable Notes Payable Sales Revenue Operating Expenses Other Expenses Contributed Capital Dividends $ 15,450 12,050 8,250 122,000 37,042 1,910 172,000 103,200 11,350 62,600 1,252 Required: 1. Prepare an income statement for the...

  • Problem 11 Intro Your company's most recent income statement and balance sheet are given below: Income...

    Problem 11 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 16.2 Equity 37.8 Total 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. Part 1 IB Attempt 1/10 for 10 pts. What is the...

  • Question 4 Consider the following recent financials for XYZ Corporation Income Statement Balance Sheet Sales 72,429Assets...

    Question 4 Consider the following recent financials for XYZ Corporation Income Statement Balance Sheet Sales 72,429Assets 178,884 Debt 44,955 Costs 43,457 Equity 133,929 EBIT 28,972 Taxes @ 38% 11,009Total 178,884Total 178,884 Net Income 17,963 Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2.577 was paid, and the company wishes to maintain a constant payout ratio. Next year's sales are projected to grow by 24%. What is the pro-forma value for equity? (Round answer...

  • statement of cash flow, balance sheet, income statement and changes in stockholder's equity Font Alignment Clipboard...

    statement of cash flow, balance sheet, income statement and changes in stockholder's equity Font Alignment Clipboard A1 * A B 1 Given Data P07-24A: Font f 'Given Data P07-24A: D E C F G NORTHWEST SALES 9 10 11 12 Transactions for Year 1: 1. Cash received from sale of stock. 2. Purchase merchandise for cash. 3a.Cash sales. 3b.Credit card sales (4% service fee) 3c Sales on account. 3d Cost of Goods Sold 4. Collected receivables from credit card sales....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT