Following are the income statement and balance sheet for XYZ co.

Income Statement

Sales 76,000

Costs 36,800

Taxable income 39,200

Taxes (34%) 13,328

Net income 25,872

Dividends 10,400

Addition to Retained Earnings 15,472

Balance Sheet

Current Assets		Current liabilities
Cash	6,100	Accounts Payable	2,600
Accounts receivables	13,800	Notes Payable	13,600
Inventory	15,200	Total	16200
Total	35,100	Long Term Debt	50,000
Fixed assets		Owners Equity
Net plant and equipment	69,000	Common stock	30,000
		Retained Earnings	7,900
Total assets	104,100	Total Liabilities and Owners Equity	104,100

A-Prepare a pro forma income statement and pro forma balance sheet, and calculate the EFN, on the basis of the following assumptions:

1-15% growth in Sales,

2-Accounts payable vary with sales whereas notes payable do not.

3-The payout ratio is constant throughout the years.

B-Calculate the following:

1-Internal rate of growth.

2-Sustainable rate of growth.