1-Compute the company's pro forma income statement and balance sheet accounts, assuming a 40% tax rate. Using the data below. And then calculate the following, using the newly computed pro forma income statement and balance sheet. 

2- Calculate the internal growth rate and sustainable growth rate for the company. What do these numbers mean? 

3- The company plans to grow by 12% next year at full capacity. Calculate EFN and determine if sales can support growth. 

4- Most assets can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a “staircase” or “lumpy” fixed cost structure. Assume the company is currently producing at 100 percent capacity. As a result, to increase production, the company must set up an entirely new line at a cost of $5,000,000. Calculate the new EFN with this assumption. What does this imply about capacity utilization for the company next year?

Sales $46,298,115.00 Retained earnings $12,717,254.00 Other expenses $ 5,870,865.00 Notes Payable $ 2,439,553.00 Net PP&E $20,381,945.00 Long-term debt $ 6,300,000.00 Inventory $ 1,235,161.00 Interest $ 725,098.00 Dividends $ 705,000.00 Depreciation $ 2,074,853.00 Common stock $ 460,000.00 COGS $34,536,913.00 Cash $ 524,963.00 Accounts Receivable $ 843,094.00 Accounts Payable $ 1,068,356.00