3. Based on proforma values, calculate the internal growth rate. (Answer: 8.03%)

NOTE: The proforma values are on the right... Please show me every step on how to calculate the internal growth rate... PLEASE don't skip any steps. I cannot solve this question. The final answer should equal 8.03% ... Please explain this very clearly to me. DON'T SKIP ANY STEPS... SHOW ME EVERY STEP!

Question 3: Based on proforma values, calculate the internal growth rate. PARROTHEAD ENTERPRISES Income Statement Income Statement Soles 152.000* 1.30 67,600 141,080 1.30 53,404 $ $ $ 14,196.32% 4,543 $ 9,653 $ *.23,378 6,275 Balance Sheet Aseats) 52,000 Co 41,080 Tucome. 10,920 Takes (32%) 3,494 "Ner Income 7,426 $ 2,599 $ 4,827 Current Liabilities A/P $ 2,850 N/P $ 7,200 Total $ 10,050 $ 31,500 Total Long Term Debt Owner's Equity $ Common Stock Retained Earnings Total $ $ $ 64,950 TOTAL LIAB & EQUITY $ 64,950 Sales Costs Taxable Income Taxes Net Income Dividends Addition to Retained Earnings PARROTHEAD ENTERPRISES Balance Sheet Current Assets Cash $3,250 A/R $ 4,775 Invetory $ 8,300 Total $ 16,325 Fixed Assets Net Plant & Equip $ 48,625 TOTAL ASSETS Divibonds (35%) Addition to Retained Exevings! Cum Areabs A/R Fived Anets 17,850 5,550 23,400 Net Plant & Equip. Tobal Asset Balance Short Centrico) A/P N/P 3.250 1.3= 4,225 4,775 = 1.3 6,207,50 18.300 1.3310, 700 Long Term Debt I 21,282.50 I 148,625.1.3: 63, 218,50 I 121,882.50*65,818. Total LIATS. Equity I 2.850 = 1.3 = 3,705 A +7,200 L 10.905 1 " I L 's.sre I " 131.500 AVE 17,856 570 +6,275= 11,825 Question 3: Based on proforma values, calculate the internal growth rate. PARROTHEAD ENTERPRISES Income Statement Income Statement Soles 152.000* 1.30 67,600 141,080 1.30 53,404 $ $ $ 14,196.32% 4,543 $ 9,653 $ *.23,378 6,275 Balance Sheet Aseats) 52,000 Co 41,080 Tucome. 10,920 Takes (32%) 3,494 "Ner Income 7,426 $ 2,599 $ 4,827 Current Liabilities A/P $ 2,850 N/P $ 7,200 Total $ 10,050 $ 31,500 Total Long Term Debt Owner's Equity $ Common Stock Retained Earnings Total $ $ $ 64,950 TOTAL LIAB & EQUITY $ 64,950 Sales Costs Taxable Income Taxes Net Income Dividends Addition to Retained Earnings PARROTHEAD ENTERPRISES Balance Sheet Current Assets Cash $3,250 A/R $ 4,775 Invetory $ 8,300 Total $ 16,325 Fixed Assets Net Plant & Equip $ 48,625 TOTAL ASSETS Divibonds (35%) Addition to Retained Exevings! Cum Areabs A/R Fived Anets 17,850 5,550 23,400 Net Plant & Equip. Tobal Asset Balance Short Centrico) A/P N/P 3.250 1.3= 4,225 4,775 = 1.3 6,207,50 18.300 1.3310, 700 Long Term Debt I 21,282.50 I 148,625.1.3: 63, 218,50 I 121,882.50*65,818. Total LIATS. Equity I 2.850 = 1.3 = 3,705 A +7,200 L 10.905 1 " I L 's.sre I " 131.500 AVE 17,856 570 +6,275= 11,825