Calculate R&E's sustainable growth rate in each year from 2019 through 2022. Assume the dividend payout ratio was the same in 2019to 21 as forecasted in 2022.

TABLE 3.5 Forecasting with a Spreadsheet: Pro Forma Financial Forecast for R&E Supplies, Incorporated, December 31, 2022 ($ thousands B C D Year 2021 Actual 2022 2023 Net sales $ 20, 613 25.00% Growth rate in net sales 86. 0% Cost of goods soldet sales General, selling, and administrative expenseset sales 12. 00% Long-term debt $ 760 $ 660 Current portion long-term debt $ 100 $ 109 Interest rate 10.60% Tax rate 25. 00% Dividend/earnings after tax 50.00% Current assetset sales 29 . 00% Net fixed assets $ 280 Current liabilitieset sales 14.50% Owners' equity $ 1,736 INCOME STATEMENT Equations Forecast Forecast Year 2022 2022 2023 Net sales B3 + B3 * C4 $ 25, 766 Cost of goods sold C5 C19 22, 159 Gross profit C19 - C20 3, 607 General, selling, and administrative expenses C6 * C19 3, 092 Interest expense + 08 + (40) 228 Earnings before tax C21 - C22 - C23 287 Tax c10 C24 72 Earnings after tax C24 - C25 216 Dividends paid C11 * C26 108 Additions to retained earnings C26 - C27 108 BALANCE SHEET Current assets -C12 + C19 7,472 Net fixed assets C13 280 Total assets C31 + C32 Current liabilities C14 7,752 C19 Long-term debt 3,736 C7 Owner's equity 660 B15 + C28 Total liabilities and owner's equity 1, 838 EXTERNAL FUNDING REQUIRED C35 + C36 + C37 6, 234 C33 - C38 $ 1,518