Build a pro forma balance sheet and income statement company's first year in business based on the following assumptions. Use your proforma to answer questions a$-$d$.$

Income Statement Assumptions:

Sales are $$100,000.$

Operating expenses are $60\%$ of sales.

Eagle's interest rate is $10\%.$

Eagle faces a $20\%$ tax rate.

Balance Sheet Assumptions:

Current assets are $40\%$ of sales.

The fixed asset turnover ratio is $1\mathrm{.}25.$

The current ratio is $3.$

Eagle issued $$40,000$ in common stock.

Questions:

a$)$ What are total assets?

b$)$ If the company borrows $$40,000$ in long$-$term debt what is the plug for dividends?

c$)$ Based on your answer in question $($b$)$ what is the company's internal sustainable growth rate?

d$)$ If instead the company does not pay dividends what is the plug for long$-$term debt?

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