1| Following are the information given for Cafes Richard Bangladesh Cafs Richard Bangladesh

2020 Income Statement Net sales

Cost of goods sold

Depreciation

Earnings before interest and taxes Less: Interest paid

Taxable Income

Less: Taxes

Net income

Dividends

Tk. 5,680,000 (4,060,000) (420,000)

1,200,000 (30,000)

1,170,000 (410,000)

Tk. 760,000

500,000

2019

1,350,000 720,000 3,200,000 940,000

Cash

Accounts rec.

Inventory 1,560,000

Accounts payable Long-term debt

Common stock Retained earnings

2019

2020

180,000 840,000

1,990,000 3,010,000 3,360,000 6,370,000

2020

1,170,000 500,000

3,500,000 1,200,000

70,000 980,000

Cafs Richard Bangladesh

Comparative Balance Sheets

Total Current Assets Net fixed assets Total assets

2,610,000

3,600,000

6,210,000

Total liabilities & equity

6,210,000

6,370,000

Required

a. Calculate cash flow from assets/FCF for 2020;

b. What is the Internal Growth rate for Cafes Richard BD? What is the sustainable growth rate for Cafes

Richard? If sales grow at SGR, how much External Financing will be needed for the year 2021 using Percentage of sales approach, assuming that the firm is operating at full capacity? Depreciation will change. Interest expense and tax rate will not change. Calculate the tax rate (hint: tax rate = tax/taxable income). Please create pro forma statements as well. Whats the impact in the new Debt to equity ratio, if

any?