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Moderate Plc has forecast a 10% sales growth rate for next year. The current financial statements are shown below: Income Statement (,000) (,000) Sales 19,000

Moderate Plc has forecast a 10% sales growth rate for next year. The current financial statements are shown below:

Income Statement

(,000)

(,000)

Sales

19,000

Costs

16,700

Taxable Income

2,300

Taxes

644

Net Income

1,656

Dividend

496.8

1,159.2

Statement of Financial Position

Assets

Liabilities

(,000)

(,000)

Current Assets

4,500

Current Liabilities

4,000

Non-current Assets

11,000

Non-current Liabilities

3,000

Ordinary Shares

2,000

Accumulated retained earnings

6,500

Total Equity

8,500

Total Assets

15,500

Total liabilities and Equity

15,500

Required

  1. Calculate whether any external funding is needed for next year?
  2. Calculate the sustainable growth rate for the company and explain what does the sustainable growth figure tell you?

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