Sales $ 325,000 COGS 139,750 Selling and Admin 65,000 Depreciation 35,400 EBIT 84,850 Interest 22,000 EBT 62,850 Taxes 14,456 Net income $ 48,395 2020/ 2021 Cash 11,100/ 13,200 2020 /2021 Accounts payable 8000/ 9,000 2020 /2021 Accounts receivabl e 15,000 16,000 2020 2021Notes payable 11500 /5,000 2020/ 2021Inventory 25,000/ 34,000 2020/ 2021Current liabilities $19,500/ $14,000 2020/ 2021Current assets $51,100/ $63,200 2020 /2021Long-term debt 108,600/ 120,887 2020/ 2021Net fixed assets 265,000/ 291,500 2020/ 2021Owners equity $188,000 /219,813

Calculate the following ratios for 2021:

Current ratio, quick ratio, asset turnover, inventory turnover, receivables turnover, return on assets, return on equity, profit margin, and equity multiplier.

Additionally, use the Dupont identity to deconstruct ROE.

The Company expects sales to grow by 13% in 2022. Assets, costs, and accounts payable are proportional to sales. Depreciation, interest, long-term debt and notes payable will remain the same year over year and not increase at the 13% rate. The company maintains a constant 40 percent dividend payout ratio and pays taxes at a 34% rate. What is the external financing needed? Use the percentage of sales method.

Using the information from 2021, what is the Companys internal growth rate? Sustainable growth rate? If the Company wanted to grow faster than their internal growth rate but did not want to use external funding, what advice might you give them to increase their internal growth rate?