3. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 4. 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 (Hint: beside sales also assume that Costs of goods sold, Other expenses, all company assets and Accounts payable grow with 12%). Can the company's sales increase at this growth rate? S&S AIR, INC. 2012 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income Dividends $560,000 Add to retained earnings 1,285,242 $36,599,300 26,669,496 4,641,000 1,640,200 $ 3,648,604 573,200 $ 3,075,404 1,230,162 $ 1,845,242 Assets Current assets Cash Accounts receivable Inventory Total current assets S&S AIR, INC. 2012 Balance Sheet Liabilities and Equity Current liabilities $ 396,900 Accounts payable $ 844,550 637,560 Notes payable 1,928,500 933,400 Total current liabilities $ 2,773,050 $ 1,967,860 Long-term debt $ 5,050,000 Fixed assets Net plant and equipment $15,411,620 Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity $ 322,500 9.233,930 $ 9,556,430 $17,379,480 Total assets $17,379,480