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Calculate g* (for year T+1). Assuming revenues of $5,050 in year t , how does this value compare to the realized growth in revenues between

Calculate g* (for year T+1). Assuming revenues of $5,050 in year t , how does this value compare to the realized growth in revenues between the years T and T+1?

YEAR T+1

Revenues $5,700.00

COGS $4,560.00

Gross Profit $1,140.00

Operating Expenses $500.00

Depreciation $27.00

EBIT $613.00

Interest Expense $35.00

EBT $578.00

Taxes $231.20

NI $ 346.80

Dividends $ 0.00

RE $346.80

Balance Sheet YEAR T+1 YEAR T

Cash and Equivalents $714.80 $120.00

Accounts Receivable $500.00 $500.00

Inventory $300.00 $340.00

Total Current Assets $1,514.80 $960.00

Fixed Assets $660.00 $800.00

Accumulated Depreciation $227.00 $200.00

Net Fixed Assets $433.00 $600.00

Total Assets $1,947.80 $1,560.00

Accounts Payable $320.00 $300.00

Short-Term Notes Payable $40.00 $50.00

Accruals $11.00 $10.00

Total Current Liabilities $371.00 $360.00

Long-Term Debt $780.00 $750.00

Total Liabilities $1,151.00 $1,110.00

Common Stock $120.00 $120.00

Retained Earnings $676.80 $330.00

Total Shareholders Equity $796.80 $450.00

Total Liabilities & Shareholders Equity $ 1,947.80 $1,560.00

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