Question 1 Management of Boriche & Kasha would like to develop financial plans for the ensuing years. You are a financial consultant, and management of the entity has approached you to assist them in developing the financial plans. You were handed the recent financial statements of the entity displayed below Bytes Ltd 2019 Income statement Sales Costs Other expense EBIT Interest paid Taxable income Taxes (35%) Net Income Bytes Ltd 2019 Statement of Financial Position GHS GHS 980,000 Current assets 770,000 Cash 28,000 14,000 Account receivable 49,000 196,000 Inventory 84,000 23,800 Total 161,000 172,200 Non-current assets 60,270 Property, plant and equipment 385,000 111,930 Total Assets 546,000 Dividends Addition to retained earnings 70,000 7,000 77,000 168,000 44.772 Current abilities 67,158 Account payable Notes payable Total Long-term debt Owner's equity stated capital Retained earnings Total Total liabilities and owner's equity 21,000 280,000 301,000 546,000 Sales for 2021 are projected to grow by 30 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. Currently the firm is operating at 80 percent capacity Required a. Compute the firm's internal growth rate and interpret the result. [3 points) b. Compute the firm's sustainable growth rate and interpret the result. [3 points) c. Using the DuPont Identity, compute ROE [2 points) d. Determine the external finance needed [7 points)