If someone could help me on 3 I would greatly appreciate it. I will rate your answer.

Increasing the amount of debt can increase shareholder returns. Especially notice that it could increase ROE. Increasing the amount of debt can increase shareholder returns. Especially notice that it could increase ROE. Increasing the amount of debt can increase shareholder returns. Especially notice that it could increase ROE. May be able to better control costs. Assets may be old and depreciated relative to industry. Profit margin and equity multiplier Could still be increased, which would further increase ROE. 3. Calculate the sustainable growth rate of East Coast Yachts. The firm operates at its full capacity and no new debt or equity is issued. Prepare pro forma income statement and balance sheet. Compute external financing needed (EFN) to support the growth in sales at the sustainable growth rate. Assume that sales, cost of goods sold, other expenses, current assets (cash, accounts receivable, and inventory), fixed assets, and current liabilities (accounts payable and notes payable) grow at precisely this rate. Also assume that depreciation, interest, long-term debt, common stock, and dividend payout ratio remain the same. The firm's tax rate is 25%. EAST COAST YACHTS Balance Sheet as of December 31, 2022 Assets Liabilities \& Equity EAST COAST YACHTS 2022 Income Statement Yacht Industry Ratios \begin{tabular}{lll} \multicolumn{1}{c}{ Ratio } & \multicolumn{1}{c}{ Good } & \multicolumn{1}{c}{ Bad } \\ \hline Current ratio & Better at managing current accounts. & May be having liquidity problems. \\ Quick ratio & Better at managing current accounts. & May be having liquidity problems. \\ Total asset turnover & Better at utilizing assets. & Assetsmaybeolderanddepreciated,requiringextensiveinvestmentsoon. \\ Inventory turnover & Better at inventory management, & Couldbeexperiencinginventoryshortage. \\ Receivables turnover & Better at collecting receivables. & Mayhavecredittermsthataretoostrict.Decreasingreceivablesturnovermayincreasesales. \\ Totaldebt-to-total-assetsratio & Lessdebtthanindustrymedianmeansthecompanyislesslikelytoexperiencecreditproblems. & Increasingtheamountofdebtcanincreaseshareholderreturns.EspeciallynoticethatitcouldincreaseROE. \end{tabular} Use the information from the mini-case "Ratios and Financial Planning at East Coast Yachts" below to answer the following questions. 1. Calculate all of the ratios listed in the industry table for East Coast Yachts. 2. Compare the financial ratios of East Coast Yachts to the industry as a whole by the following categories. a) Short-term solvency or liquidity measures b) Long-term solvency measures c) Asset management or turnover measures d) Profitability measures Also comment on the performance of each category (a) to (d) above and overall performance of East Coast Yachts based on your analyses. You do not have to discuss every financial ratio in each category. Discuss the ratios that you think are most relevant and useful for the company. Below is a list of possible reasons it may be good or bad that each ratio is higher or lower than the industry. Note that the list is not exhaustive, but merely one possible explanation for each ratio. Increasing the amount of debt can increase shareholder returns. Especially notice that it could increase ROE. Increasing the amount of debt can increase shareholder returns. Especially notice that it could increase ROE. Increasing the amount of debt can increase shareholder returns. Especially notice that it could increase ROE. May be able to better control costs. Assets may be old and depreciated relative to industry. Profit margin and equity multiplier Could still be increased, which would further increase ROE. 3. Calculate the sustainable growth rate of East Coast Yachts. The firm operates at its full capacity and no new debt or equity is issued. Prepare pro forma income statement and balance sheet. Compute external financing needed (EFN) to support the growth in sales at the sustainable growth rate. Assume that sales, cost of goods sold, other expenses, current assets (cash, accounts receivable, and inventory), fixed assets, and current liabilities (accounts payable and notes payable) grow at precisely this rate. Also assume that depreciation, interest, long-term debt, common stock, and dividend payout ratio remain the same. The firm's tax rate is 25%. EAST COAST YACHTS Balance Sheet as of December 31, 2022 Assets Liabilities \& Equity EAST COAST YACHTS 2022 Income Statement Yacht Industry Ratios \begin{tabular}{lll} \multicolumn{1}{c}{ Ratio } & \multicolumn{1}{c}{ Good } & \multicolumn{1}{c}{ Bad } \\ \hline Current ratio & Better at managing current accounts. & May be having liquidity problems. \\ Quick ratio & Better at managing current accounts. & May be having liquidity problems. \\ Total asset turnover & Better at utilizing assets. & Assetsmaybeolderanddepreciated,requiringextensiveinvestmentsoon. \\ Inventory turnover & Better at inventory management, & Couldbeexperiencinginventoryshortage. \\ Receivables turnover & Better at collecting receivables. & Mayhavecredittermsthataretoostrict.Decreasingreceivablesturnovermayincreasesales. \\ Totaldebt-to-total-assetsratio & Lessdebtthanindustrymedianmeansthecompanyislesslikelytoexperiencecreditproblems. & Increasingtheamountofdebtcanincreaseshareholderreturns.EspeciallynoticethatitcouldincreaseROE. \end{tabular} Use the information from the mini-case "Ratios and Financial Planning at East Coast Yachts" below to answer the following questions. 1. Calculate all of the ratios listed in the industry table for East Coast Yachts. 2. Compare the financial ratios of East Coast Yachts to the industry as a whole by the following categories. a) Short-term solvency or liquidity measures b) Long-term solvency measures c) Asset management or turnover measures d) Profitability measures Also comment on the performance of each category (a) to (d) above and overall performance of East Coast Yachts based on your analyses. You do not have to discuss every financial ratio in each category. Discuss the ratios that you think are most relevant and useful for the company. Below is a list of possible reasons it may be good or bad that each ratio is higher or lower than the industry. Note that the list is not exhaustive, but merely one possible explanation for each ratio