Name Marquis Moore FIN 3250 Assignment 3 (for Chapter 4) (Show your work for full credit) Income Statement Sales - Costs Taxable income - Taxes (34%) Net income S10.000 7.500 $2,500 850 S1.650 Dividends paid Added to Retained Eamings 5900 $660 Balance Sheet Current assets $5,000 Total debt $6,000 Fixed assets 10,000 Owner's equity 9.000 Total SI5,000 Total SI5.000 1. Using the financial statements above, compute the profit margin (PM). Profit margin= net income/sales - 1650/10000 =0.145 2. What is retention ratio? 3. What is the return on assets (ROA)? 4. What is the return on equity (ROE)? I - ( net incone I dividend) = 1 - ( 1650 1990) = 8.6667 Return on assets net incone /assets=1650/15000 = 0.110 Return on eavity = het income searity = 1650 / 9000 = 0. 1833 Debt to cavity ratio = debt leavity = 6ooo 19000=0.6667 5. What is the debt-to-equity ratio (D/E)? 6. Determine the growth rate that can be maintained if no external financing is used. 7. Determine the sustainable growth rate. 8. The company is actually forecasting a 20 percent increase in sales for the coming year. Assets vary directly with sales, while liabilities and equity do not. Compute the EFN based on the 20 percent increase