1) Calculate the following ratios for 2021: Current ratio, quick ratio, asset turnover, inventory turnover, receivables turnover, return on assets, return on equity, profit margin, and equity multiplier. Additionally, use the Dupont identity to deconstruct ROE. 2) The Company expects sales to grow by 13% in 2022. Assets, costs, and accounts payable are proportional to sales. Depreciation, interest, long-term debt and notes payable will remain the same year over year and not increase at the 13% rate. The company maintains a constant 40 percent dividend payout ratio and pays taxes at a 34% rate. What is the external financing needed? Use the percentage of sales method. 3) Using the information from 2021, what is the Companys internal growth rate? Sustainable growth rate? If the Company wanted to grow faster than their internal growth rate but did not want to use external funding, what advice might you give them to increase their internal growth rate?

\begin{tabular}{lc} & \multicolumn{1}{c}{2021} \\ \cline { 2 - 3 } Sales & $25,000 \\ COGS & 139,750 \\ Selling and Admin & 65,000 \\ Depreciation & 35,400 \\ EBIT & 84,850 \\ Interest & 22,000 \\ EBT & 62,850 \\ Taxes & 14,456 \\ Net income & $48,395 \\ \hline \end{tabular} Cash \begin{tabular}{rr} 2020 & 2021 \\ \hline 8000 & 9,000 \end{tabular} \begin{tabular}{lcllrrr} Accounts receikabl e & 15,000 & 16,000 & Notes payable & 11500 & 5,000 \\ \cline { 2 - 4 } Inventory & 25,000 & 34,000 & Current liabilities & $19,500 & $14,000 \\ Current assets & $51,100 & $63,200 & Long-term debt & 108,600 & 120,887 \\ \cline { 2 - 6 } Net fixed assets & 265,000 & 291,500 & Owners' equity & $188,000 & 219,813 \\ \cline { 2 - 6 } Total assets & $316,100 & $354,700 & Total liabilities and owners' equity & $316,100 & $354,700 \\ \cline { 3 - 6 } \end{tabular} \begin{tabular}{lc} & \multicolumn{1}{c}{2021} \\ \cline { 2 - 3 } Sales & $25,000 \\ COGS & 139,750 \\ Selling and Admin & 65,000 \\ Depreciation & 35,400 \\ EBIT & 84,850 \\ Interest & 22,000 \\ EBT & 62,850 \\ Taxes & 14,456 \\ Net income & $48,395 \\ \hline \end{tabular} Cash \begin{tabular}{rr} 2020 & 2021 \\ \hline 8000 & 9,000 \end{tabular} \begin{tabular}{lcllrrr} Accounts receikabl e & 15,000 & 16,000 & Notes payable & 11500 & 5,000 \\ \cline { 2 - 4 } Inventory & 25,000 & 34,000 & Current liabilities & $19,500 & $14,000 \\ Current assets & $51,100 & $63,200 & Long-term debt & 108,600 & 120,887 \\ \cline { 2 - 6 } Net fixed assets & 265,000 & 291,500 & Owners' equity & $188,000 & 219,813 \\ \cline { 2 - 6 } Total assets & $316,100 & $354,700 & Total liabilities and owners' equity & $316,100 & $354,700 \\ \cline { 3 - 6 } \end{tabular}