Given the financial information attached for Bettys Biscotti, calculate the Sustainable Growth Rate. Only current assets are spontaneous.

Bettys Biscotti

Income Statement

For the Year Ended December 31, 2019

Revenue			$1,800,000
Cost of Good Sold			1,160,000
Gross Profit			$640,000
Operating Expenses:
Selling Expenses:
Sales Salaries Expense	$185,000
Distribution Expense	48,000
Depreciation Expense	10,000
Travel Expense	22,000	$265,000
General and Administrative Expenses:
Accounting Expense	$69,000
Office Expense	23,000
Management Salaries	180,000
Depreciation	12,000	284,000	549,000
Operating Income			$91,000
Interest Expense			65,000
Income Before Tax			$26,000
Tax			10,400
Net Income			$15,600

Bettys Biscotti

Statement of Retained Earnings

For the Year Ended December 31, 2010

Retained Earnings, Beginning			$0
Add: Net Income			15,600
Subtotal			$15,600
Deduct: Dividends			2,000
Retained Earnings, Ending			$13,600

Bettys Biscotti

Balance Sheet

December 31, 2010

Cash			$48,000
Accounts Receivable			150,000
Inventory			25,000
Prepaid Expenses			12,000
			235,000
Computers	$15,000
Accumulated Depreciation	(2,000)	$13,000
Vehicles	$25,000
Accumulated Depreciation	(5,000)	$20,000
Building	$280,000
Accumulated Depreciation	(15,000)	265,000
Land		60,000	358,000
Total Assets			$593,000
Accounts Payable			$90,000
Line of Credit			72,400
LT Note Payable			400,000
Common Shares		$17,000
Retained Earnings		13,600	30,600
Total Liabilities and Shareholders Equity			$593,000

Calculate the SGR (must show work):_________

This SGR above means:_____________________