Please- only typewritten answers, no handwritten answers, please.

The Excel file attached contains the Balance Sheet and Income Statement for ABC Corp. ABC Corp is currently planning for next year's sales and asked their financial analysts to prepare a financial plan for the next year so the company can begin to address any outside investment requirements.

1. Calculate the internal growth rate and sustainable growth rate for ABC Corp. What do these numbers mean?

Income Statement
Sales	$80,518,460
COGS	-$58,672,892
Other expenses	-$10,210,200
Depreciation	-$3,608,440
EBIT	$8,026,928
Interest	-$1,261,040
Taxable income	$6,765,888
Taxes (40%)	-$2,706,355
Net income	$4,059,533
Dividends	$1,220,000
Add to RE	$2,839,533
Balance Sheet
Assets		Liabilities and Equity
Current assets			Current liabilities
Cash	$912,870		Accounts payable	$1,858,010
Accounts rec.	$1,466,250		Notes payable	$4,242,700
Inventory	$2,146,360		Total CL	$6,100,710
Total CA	$4,525,480
			Long-term debt	$11,000,000
Fixed assets
Net PP&E	$35,446,860		Shareholder equity
			Common stock	$800,000
			Retained earnings	$22,071,630
			Total equity	$22,871,630
Total Assets	$39,972,340		Total L&E	$39,972,340

Please- only typewritten answers, no handwritten answers, please.