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 2020 Cash Accounts rec. Inventory Total Current Assets Net fixed assets Total assets Cafs Richard Bangladesh Comparative Balance Sheets 2019 2019 2020 70,000 180,000 Accounts payable 1,350,000 1,170,000 980,000 840,000 Long-term debt 720,000 500,000 1,560,000 1,990,000 Common stock 3,200,000 3,500,000 2,610,000 3,010,000 Retained earnings 940,000 1,200,000 3,600,000 3,360,000 6,210,000 6,370,000 Total liabilities & equity 6,210,000 6,370,000 Required a. Calculate cash flow from assets/FCF for 2020; (5) 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. What's the impact in the new Debt to equity ratio, if any? (4+4+4+4=15) 2. Comment on the Profitability of the local company that has been assigned to your group. Use Gross profit margin, Operating profit margin and net profit margin for 2020 info (6). a. Financial information can be gathered from WSJ, Yahoo finance or investing.com b. What is P/E of your local company (the assigned BD company). Do think the P/E is high or low? Compare it with that of industry leader (you choose the company)