5/ Calculate and interpret the sustainable growth rates (SGR).

Cash 500 Accounts payable 2,000 Accounts receivable 5,000 Notes payable 1,000 Inventory 2,500 Total 3,000 Total 8,000 Long-term debt 7,000 Fixed assets Owners' equity Net Plant and equipment 12,000 Common stocks and paid-in 9,000 surplus Retained earnings 1,000 Total equity 10,000 Total assets 20,000 Total liabilities & owner's equity 20,000 Income statements 2019 2019 Sales 40,000 Cost of goods sold 30,000 Depreciation 2,000 Earnings before interest & taxes (EBIT) 8,000 Interest paid 1,000 Taxable income 7,000 Taxes 2,800 Net Income 4,200 Dividends 3,570