Table 3.1:

Table 3.1 presents R\&E Supplies' financial statements for the period 2018 through 2021. Calculate R\&E's sustainable growth rate in each year from 2019 through 2021. Note: Round each step and the final answers to 1 decimal place. \begin{tabular}{|c|c|c|c|c|} \hline & 2018 & 2019 & 2020 & 2021* \\ \hline NetsalesCostofgoodssold & $11,19019,400 & $13,764111,699 & $16,104113,688 & $20,613 \\ \hline Gross profit & 1,790 & 2,065 & 2,416 & 2,886 \\ \hline Expenses: & & & & \\ \hline General, selling, and administrative expenses & 1,198 & 1,431 & 1,795 & 2,408 \\ \hline Net interest expense & 100 & 103 & 110 & 90 \\ \hline Earnings before tax & 492 & 531 & 511 & 388 \\ \hline & 123 & 133 & 128 & 97 \\ \hline Earnings after tax & $369 & $398 & $383 & $291 \\ \hline \multicolumn{5}{|c|}{ Balance Sheets } \\ \hline \multicolumn{5}{|l|}{AssetsCurrentassets:} \\ \hline Cash and securities & $671 & $551 & $644 & $412 \\ \hline Accounts receivable & 1,343 & 1,789 & 2,094 & 2,886 \\ \hline Inventories & 1,119 & 1,376 & 1,932 & 2,267 \\ \hline Prepaid expenses & 14 & 12 & 15 & 18 \\ \hline Total current assets & 3,147 & 3,728 & 4,685 & 5,583 \\ \hline Net fixed assets & "128 & "124 & "295 & "287 \\ \hline Total assets & $3,275 & $3,852 & $4,980 & $5,870 \\ \hline \multicolumn{5}{|l|}{LiabilitiesandOwnersEquityCurrentliabilities:} \\ \hline Bank loan & $50 & $50 & $50 & $50 \\ \hline Accounts payable & 1,007 & 1,443 & 2,426 & 3,212 \\ \hline Current portion long-term debt & 60 & 50 & 50 & 100 \\ \hline Accrued wages & 5 & 7 & 10 & 18 \\ \hline Total current liabilities & 1,122 & 1,550 & 2,536 & 3,380 \\ \hline Long-term debt & 960 & & 860 & 760 \\ \hline Common stock & 150 & 150 & 150 & 150 \\ \hline Retained earnings & "1,043 & "1,242 & "1,434 & "1,580 \\ \hline Total liabilities and owner's equity & $3,275 & $3,852 & $4,980 & $5,870 \\ \hline \end{tabular}