Question 2: Following are the income statement and balance sheet for Sandar Co.

Income Statement Sales 60,000 Costs 40,000 Taxable income 20,000 Taxes (34%) 6,800 Net income 13,200

Dividends 5,280 Addition to Retained Earnings 7,920

Balance Sheet Current Assets Current liabilities Cash 6,100 Accounts Payable 2,600 Accounts receivables 13,800 Notes Payable 13,600 Inventory 15,200 Total 16200 Total 35,100 Long Term Debt 50,000 Fixed assets Owners Equity Net plant and equipment 69,000 Common stock 30,000 Retained Earnings 7,900 Total assets 104,100 Total Liabilities and Owners Equity 104,100

A. Prepare a pro forma income statement and pro forma balance sheet, and calculate the EFN, on the basis of the following assumptions: 1. 25% growth in Sales, 2. Accounts payable vary with sales whereas all other liabilities remain unchanged. 3. There are no new common stocks issued. 4. The payout ratio is constant throughout the years.

B. Calculate the following: 1. Internal rate of growth. 2. Sustainable rate of growth.

please help me to find the correct answers for my class participation plz find the answer to part A number 2,3and 4 only to my questions