I need the answer to question #3

SES AIR, INC. 2018 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (21%) Net income Dividends Add to retained earnings $46,298,115 34,536,913 5.870,865 2,074,853 $ 3,815,484 725,099 $ 3,090,386 772,597 $ 2.317,789 WEB $ 705,000 1,512,789 DAS PESSOA S A SAR NSES AIR, INC. 2018 Balance Sheet Liabilities and E Assets Current assets Casti Accounts receivable Inventory Total current assets Fxed assets Net plant and equipment $ 524,963 843,094 1,235,161 $ 2,603,218 Current liabilities Accounts payable Notes payable Total current liabilities Long-term cebt $ 1,068,356 2,439,553 $ 3,507,909 $ 6,300,000 $20,281,945 Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity $ 460,000 12,717,254 $13,177,254 $22,985,163 Total assets $22,985,163 QUESTIONS 1. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 2. S&S Air is planning for a growth rate of 12 percent next. year. Calculate ihe EFN for the company assuining the company is operating at full capacity. Can the company's sales increase at this growth rate? 3. Most assers can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a "staircase" or "lumpy" fixed coststructure. Assume S&S Air is cu- rently producing at 100 percent capacity. As a result, to increase production, the company must set up an entirely new line at a cost of $5,000,000. Calculate the new EFN with this assumption. What does this imply about capacity utilization for the company next year? SES AIR, INC. 2018 Income Statement Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (21%) Net income Dividends Add to retained earnings $46,298,115 34,536,913 5.870,865 2,074,853 $ 3,815,484 725,099 $ 3,090,386 772,597 $ 2.317,789 WEB $ 705,000 1,512,789 DAS PESSOA S A SAR NSES AIR, INC. 2018 Balance Sheet Liabilities and E Assets Current assets Casti Accounts receivable Inventory Total current assets Fxed assets Net plant and equipment $ 524,963 843,094 1,235,161 $ 2,603,218 Current liabilities Accounts payable Notes payable Total current liabilities Long-term cebt $ 1,068,356 2,439,553 $ 3,507,909 $ 6,300,000 $20,281,945 Shareholder equity Common stock Retained earnings Total equity Total liabilities and equity $ 460,000 12,717,254 $13,177,254 $22,985,163 Total assets $22,985,163 QUESTIONS 1. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 2. S&S Air is planning for a growth rate of 12 percent next. year. Calculate ihe EFN for the company assuining the company is operating at full capacity. Can the company's sales increase at this growth rate? 3. Most assers can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a "staircase" or "lumpy" fixed coststructure. Assume S&S Air is cu- rently producing at 100 percent capacity. As a result, to increase production, the company must set up an entirely new line at a cost of $5,000,000. Calculate the new EFN with this assumption. What does this imply about capacity utilization for the company next year