=2. Table 3.1 in the last chapter presents R&E Supplies' financial statements for the period 2002 through 2005, and Table 3.5 presents a pro forma financial forecast for 2006. Use the information in these tables to answer the following questions.

a. Calculate R&E Supplies' sustainable growth rate in each year from 2003 through 2006.

b. Comparing the company's sustainable growth rate with its actual and projected growth rates in sales over these years, what growth management problems does R&E Supplies appear to face in this period?