Calculate both SGR and IGR for both of your assigned companies (Olympic and Johnson). Then create a proforma income statement and Balance sheet for your Olympic company only - by growing the company sales using the respective SGR only. Comment on the following issues:

• Will retain earnings be enough for the desired growth? If not, then consider a loan.

• If the loan taken, then check whether the loan will be sustainable or not

• Can the company achieve the growth without taking a loan by changing dividend policy?

Keep the following points in mind in calculation:

• Use FY 2020 info as current year (31/12/20).

• Increase depreciation.

• Interest expense will not change.

• The current D/E is optimum.

• All assets will grow.

• Among liabilities, only accounts payable will grow.

• Equity will not change.