2021 Balance Sheet Assets Liabilities and Equity GHS GI Current assets Cash Accounts receivable Inventory Total current assets 441,000 708,400 1,037,120 2,186,520 889, 2,030, 2,919 5,320, Fixed assets Net plant and equipment 16,122,400 Current liabilities Accounts payable Notes payable Total current liabilities Long-term debt Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity 350. 9,719, 10.069. Total assets 18,308,920 18,308 QUESTIONS: 1. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 2. S&S Air is planning for a growth rate of 12 percent next year. Calculate the EFN for the company assuming the company is operating at full capacity. Can the company's sales increase at this growth rate? 3. 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 S&S Air 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 GHS 5,000,000. Calculate the new EFN with this assumption. What does this imply about capacity utilization for the company next year? 2021 Balance Sheet Assets Liabilities and Equity GHS GI Current assets Cash Accounts receivable Inventory Total current assets 441,000 708,400 1,037,120 2,186,520 889, 2,030, 2,919 5,320, Fixed assets Net plant and equipment 16,122,400 Current liabilities Accounts payable Notes payable Total current liabilities Long-term debt Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity 350. 9,719, 10.069. Total assets 18,308,920 18,308 QUESTIONS: 1. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 2. S&S Air is planning for a growth rate of 12 percent next year. Calculate the EFN for the company assuming the company is operating at full capacity. Can the company's sales increase at this growth rate? 3. 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 S&S Air 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 GHS 5,000,000. Calculate the new EFN with this assumption. What does this imply about capacity utilization for the company next year