Iable 31 presents R\&E Supplies' financial statements for the period 2018 through 2021, and Table 35 presents a pro forma financial forecast for 2022 . Use the information in these tables to answer the following questions. Calculate R\&E's sustainable growth rate in each year from 2019 through 2022. Assume the dividend payout ratio was the same in 2019 to 21 as forecasted in 2022. Note: Round each step and the final onswers to 1 decimal place. TABLE 3.1 Financial Stotenents for RBE Supplies, Incorporated, Decenber 31, 2018-2021 ( $ thousands) Income Statements Net sales Cost of goods sold Gross profit Expenses: General, selling, and adninistrative expenses Net interest expense Earnings before tax Tax. Earnings after tax Assets Current assetst Cash and securities Accounts receivable Inventories Prepaid expenses Total current assets Net fixed assets Total assets Liabilities and Omer's Fquity Current liabilitiea: Bank loan Accounts payable Current portion leng-term debt Accrued wages Total current liabilities. Long-term debt Coemen stock Retasned earnings Total Labilities and owner's equity \begin{tabular}{rrrr} 2018 & 2019 & 2020 & 2021 \\ $11,190 & $13,764 & $16,104 & $29,613 \\ 9,490 & 11,699 & 11,688 & 417,727 \\ \hline 1,790 & 2,065 & 2,416 & 2,886 \end{tabular} \begin{tabular}{rrrr} 1,198 & 1,431 & 1,795 & 2,408 \\ 100 & 103 & 110 & 90 \\ \hline 492 & 531 & 511 & 388 \\ 123 & 133 & 128 & 97 \\ \hline$369 & $398 & $383 & $291 \\ \hline \end{tabular} Balance Sheets: \begin{tabular}{rrrr} $671 & $51 & $644 & $412 \\ 1,343 & 1,789 & 2,094 & 2,886 \\ 1,119 & 1,376 & 1,932 & 2,267 \\ 14 & 12 & 15 & 18 \\ \hline 3,147 & 3,728 & 4,685 & 5,583 \\ "128 & "124 & $295 & $287 \\ \hline$3,275 & $3,852 & $4,988 & $5,870 \\ \hline \end{tabular} \begin{tabular}{rrrr} $50 & $50 & $50 & $50 \\ 1,007 & 1,443 & 2,426 & 3,212 \\ 60 & 50 & 50 & 100 \\ 5 & 7 & 10 & 18 \\ \hline 1,122 & 1,550 & 2,536 & 3,380 \\ 960 & 910 & 860 & 760 \\ 150 & 150 & 150 & 150 \\ 71,043 & 41,242 & 11,434 & 1,580 \\ \hline$3,275 & $3,852 & $4,980 & $5,870 \\ \hline \end{tabular} ABLE 3.5 Forecasting with a Spreadsheet: Pro Forma Financial Forecast for f8E 5upplies, Incorporated, December 31 , 2022 (\$ housands) A Year 2021 Actual C D Net sales S 20,613 Grouth rate in net sales 2022 2023 Cost of 500ds soldet sales General, seliing, and administrative expenseset sales Long-tern debt Current portion long-term debt Interest rate 25.00% 86.0% 12.00% 5.660 5.100 10.09% 25.00% 50.00% 29.00% 5.280 14.508 Tax rate Dividend/earnings after tax Current assetset sales Net fixed assets Current liabilitieset sales Owners' equity ThCOMF STATEMENT $1,730 $760 $100 Cquations HALANCE SHET Year 2022 Net sazes Cost of goeds sold Gress profit General, seliing, and adninistrative expenses Interest expense tarnings before tax Tax Earnings after tax Dividends paid Additions to retained earnings Current assets Net +1 xed assets Total assets Current liabilities Long-term debt Ouner's equity Total liabilities and owner's equity EXTERNAL FUNDING REQUIRED
