11 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 Cash Accounts rec. Inventory Total Current Assets Net fixed assets Total assets Cafs Richard Bangladesh Comparative Balance Sheets 2019 2020 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 for 2020; (5) b. What is the Internal Growth rate for Cafes Richard BD? What is the sustainable growth rate for Gloria Jeans BD? 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? 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? 11 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 Cash Accounts rec. Inventory Total Current Assets Net fixed assets Total assets Cafs Richard Bangladesh Comparative Balance Sheets 2019 2020 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 for 2020; (5) b. What is the Internal Growth rate for Cafes Richard BD? What is the sustainable growth rate for Gloria Jeans BD? 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? 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