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Janom Construction Company forecasts that its soles could grow 12% for the next year 2022, the financial manager is planning to meet the forecasts by

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Janom Construction Company forecasts that its soles could grow 12% for the next year 2022, the financial manager is planning to meet the forecasts by planning for additional investments The total amount of dividend paid in 2021 was $10,000. Also the company has credit terms offered for the current year 2021 by its suppliers of 2/5, net 30 days, and the company pays its credits on due date. Below is the financial statements for the current year 2021; Janom Construction Company Income Statement For the Year Ended Dec. 31, 2021 2021 Sales 300,000 Cost of Goods Sold 200.000 Gross Profit 100,000 Selling and G&A Expenses 25,000 Fixed Expenses 10,000 Depreciation Expense 5,000 EBIT 60,000 Interest Expense 18,000 Earnings Before Taxes 42,000 Taxes 16,800 Net Income 25,200 Notes Tax Rate 40% Janom Construction Company Balance Sheet As of Dec. 31, 2021 Assets 2021 Cash and Equivalents 20,000 Accounts Receivable 15,000 Inventory 17,000 Total Current Assets 52,000 Plant & Equipment 150,000 Accumulated Depreciation 10,000 Net Fixed Assets 140,000 Total Assets 192,000 Liabilities and Owner's Equity Accounts Payable 20.000 Short-term Notes Payable 5.000 Accruals 3.000 Total Current Liabilities 28.000 Long-term Debt 80.000 Total Liabilities 108,000 Common Stock 73.000 Retained Earnings 11,000 Total Shareholder's Equity 84,000 Total Liabilities and Owner's Equity 192,000 8. The most approximate growth rate that the company can reach in 2020 if the company is able to invest $7.870 as additional funds is: O a. 18% b. 20% O c 15% d. 17% e. None of the above

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