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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

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 (if they have any)

Equity will not change

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