Question
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
- Calculate whether any external funding is needed for next year?
- Calculate the sustainable growth rate for the company and explain what does the sustainable growth figure tell you?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started