Planning for Growth at S&S Air Aner Chris completed the ratio analysis for S&S Air (no Chapter 3). Mark and Todd approached him about planning for next year's sale. The company had hintocially used little planning for investment needs. As a termelt, the company experienced some challenging times because of cash flow problem. The Liek of planning resulted in missed sales, as well as periods when Mark und Todd were able to draw salaries. To this end, they would like Chris to prepare a financial plan for the next year so the company can begin to address any outside investment requirements. The income statement and balance sheet are shown in S&S Air, Inc. 2021 Income Statement Sales $37,038,492 Cost of goods sold 27,629,530 Other expenses 4,696,692 Depreciation 1,659,882 EBIT $ 3,052,388 Interest 580,078 Taxable income $ 2,472,310 Taxes (21%) 618,078 Net income $1,854,232 Dividends $ 565,000 Add to retained earnings 1,289,232 S&S Alr, Inc. 2021 Balance Sheet Assets Liabilities and Equity Current assets Current liabilities Cash $ 419,970 674,475 988,129 Accounts receivable Inventory Total current assets Fixed assets Accounts payable $ 854,685 Notes payable 1,951,642 Total current liabilities $2.806.327 Long term debt 55,100,000 $2,082,574 Net plant and equipment $16,305,556 Shareholder equity Common stock $ 410,000 Retained earnings 10,071,003 510 481,803 Total equity Total assets $18,388,130 Total liabilities and equity 51B, 388.130 QUESTIONS 1. Calculate the internal growth rate and sustainable growth rate for s&s Air What do these numbeta mean? 1. Sus Air ieplanning for a growth rate of 14 percent next year. Calculate the EFN for the company suming the company de operating at full capacity. Cin the company al interes at this growth rate? Most assets can be increased as a percentage of sales. For instance, enth can be increased by any amount. However, fixed sets must be increased in pecific amounts because it is impossible, as a practical matter, to buy part of a new plantor marine. In this case, a company has a staircase or "lumpy fixed cost structure. Aumes Air is currently producing at 100 percent capacity. As a result, to increase production, the company muset up ettirely new line cont of $5,000,000. Calculate the new EFN with this simption What does this imply about capacity utilization for the any next year