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MINICASE Planning for Growth at S&S Air After Chris completed the ratio analysis for SRS Air (see Chapeer 3). Mark and Todd approached him about

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MINICASE Planning for Growth at S&S Air After Chris completed the ratio analysis for SRS Air (see Chapeer 3). Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a result, the company experienced some chal lenging times because of cash flow problems The lack of planning resulted in missed sales as well as periods when Mark and Todd were unable to draw alanes. To this end, they would like Christo prepare a financial plan for the next year so the company can begin to address any outside investment require ments. The income statement and balance sheet are shown here: S&R INC 20cm Sales Cost of goods Other expert DO Eer rest income 340290210 236.440 5,106,100 134 $4,013,484 $19.92 $3.392.944 111 52020,70 Netcon Dividends Adt dans $ 0.00 12.76 2. S&S Air is planning for a growth rate of 12 percent next yeat Calculate the EFN for the company assuming the company is operating a full capacity Can the company's sales increase at this growth rate? MINICASE Planning for Growth at S&S Air After Chris completed the ratio analysis for SRS Air (see Chapeer 3). Mark and Todd approached him about planning for next year's sales. The company had historically used little planning for investment needs. As a result, the company experienced some chal lenging times because of cash flow problems The lack of planning resulted in missed sales as well as periods when Mark and Todd were unable to draw alanes. To this end, they would like Christo prepare a financial plan for the next year so the company can begin to address any outside investment require ments. The income statement and balance sheet are shown here: S&R INC 20cm Sales Cost of goods Other expert DO Eer rest income 340290210 236.440 5,106,100 134 $4,013,484 $19.92 $3.392.944 111 52020,70 Netcon Dividends Adt dans $ 0.00 12.76 2. S&S Air is planning for a growth rate of 12 percent next yeat Calculate the EFN for the company assuming the company is operating a full capacity Can the company's sales increase at this growth rate

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