PLEASE HELP

Planning for Growth at S\&S Air After Chris completed the ratio anabsis for SES Air (see Chapter 3). Mark and Todd approected him about planning for net year's sales. The company lad hissoricalty used limle planning for iavestraent needs. As a sesath the conguary etperienced some challenging times because of cash fion problems. The lack of planning resalted in missed sales, as well as periods when Mark and Todd were anable to draw salaries. To this ead, they would like Chris to prepare a fnancial plan for the nent year so the conpury can Begin to aderess any ouside investment requirements. The income statement and balance sheet are shown here: QUESTIONS 1. Calculate the internal growth rate and sastainable growth rate for SQS Air. What do these numbers mean? 2. S\&S Air is planning for a growth rate of 12 percent nex year. Calculate the EFN for the company assuming the comparg is operating at full capacity. Can the company's sales increase at this swowth rate? 3. Most assets can be increased as a percentape of sales. For instance. cash can be increaved by any amount. However. fixed assets mus be increased in specific amounts becanse it is impossible, as a practical matter, to bo part of a new plant or machine. In this case. a company has a "staircase" or "humpy" fixed cost strecture. Assume SES Air is currentig prodocing at 100 percent capacitz. As a result, to increase production, the company auast set up an entirely new line at a cost of S5.000.000. Calculare the new EFN with this assomption. Planning for Growth at S\&S Air After Chris completed the ratio anabsis for SES Air (see Chapter 3). Mark and Todd approected him about planning for net year's sales. The company lad hissoricalty used limle planning for iavestraent needs. As a sesath the conguary etperienced some challenging times because of cash fion problems. The lack of planning resalted in missed sales, as well as periods when Mark and Todd were anable to draw salaries. To this ead, they would like Chris to prepare a fnancial plan for the nent year so the conpury can Begin to aderess any ouside investment requirements. The income statement and balance sheet are shown here: QUESTIONS 1. Calculate the internal growth rate and sastainable growth rate for SQS Air. What do these numbers mean? 2. S\&S Air is planning for a growth rate of 12 percent nex year. Calculate the EFN for the company assuming the comparg is operating at full capacity. Can the company's sales increase at this swowth rate? 3. Most assets can be increased as a percentape of sales. For instance. cash can be increaved by any amount. However. fixed assets mus be increased in specific amounts becanse it is impossible, as a practical matter, to bo part of a new plant or machine. In this case. a company has a "staircase" or "humpy" fixed cost strecture. Assume SES Air is currentig prodocing at 100 percent capacitz. As a result, to increase production, the company auast set up an entirely new line at a cost of S5.000.000. Calculare the new EFN with this assomption