Classic Home Furniture is anticipating a 20% growth in sales in each of 2018 and 2019. Below is their 2017` profit and loss statement, the projected profit and loss statements for 2018 and 2019, and the select profitability ratios for each of the years. Should Classic Home Furniture grow as planned? 

Classic Home Furniture Profit and Loss Statement Sales Activities Net Revenue Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Overhead Expenses Depreciation Total Operating Expenses Operating Profit Interest Inventory Write Downs Profit Before Taxes Income Taxes Net Profit Total Equity Gross Margin Operating Margin Net Margin Return on Equity Actual 2017 $1,543,000 $859,000 $684,000 $312,000 $233,340 $16,700 $562,040 $121,960 $17,450 $12,460 $104,510 $21,947 $82,563 $950,443 44.33% 7.90% 5.35% 8.69% Projected 2018 $1,877,500 $1,128,000 $749,500 $355,000 $254,000 $16,700 $625,700 $123,800 $19,800 $14,500 $104,000 $21,840 $82,160 $1,032,603 39.92% 6.59% 4.38% 7.96% Projected 2019 $2,190,800 $1,315,700 $875,100 $390,000 $256,000 $16,700 $662,700 $212,400 $22,000 $11,300 $190,400 $39,984 $150,416 $1,183,019 39.94% 9.70% 6.87% 12.71%