TABLE 35 Forecasting wich a Computer Spreadsheet: Pro Forma Financial Forecast for RE Supplies, Inc., December 31, 2015 (5 thousands Table 3.1 in the last chapter presents R&E Supplies financial statements for the period 2011 through 2014, and Table 3.5 presents a pro forma financial forecast for 2015. Use the information in these tables to answer the following questions a Caloulate R&E's sustainable growth rate in each year from 2012 through 2015 b. Comparing the company's sustainable growth rate with its actual and projected growth rates in sales over these years, what growth management problems does R&E appear to face in this Net tales Growth rate in net sale 20,613 25.0% SCost of gods soldhet a Gen, sel, and sdmin expenseshet sales Long-term delt Curment portion long-term debt nterest rate 120% c. How did the company cope with these problems? Do you see any difficulties with the way addressed its growth problems over this period? If so, what are they? d. What advice would you offer management regarding managing future growth? TABLE 21 Finncial Statements 6 r R& E Surple. Ints Demmber 31, 2011-2014 cshusand) $100 10.0% 450% 50.0% 29,0% Dividend/earnings after tax Curment assets het sales Net faed asset Current labiltehet sales 2011 11,190 $16.104 149% Net sales Cost of goods sold Gross profit $13,.74 2,005 XM 161 INCOME STATEMENT Equatians C5 C1 C*C19 1,019 1810 Net isterest expense Eamings before tax Earnings after tax Net sales Cost of goods sokd Gross proft Gen, sel, and admi ex Interest expense Eamings beforetax 25,766 Balance Sheets Current assets Cash and securities Accounts receivae S 671 343 1,789 2.04 Eamings after ta Dividends paid Additions to retained eanings Prepaid expenses Total current assets Net fixed assets Total assets 3275 52 430 BALANCE SHEET Curment assets Net faxed assets Total assets Liabilinies and Owners Equity Current labilites C12 C1 C13 7,472 Bank loan Accounts payable Current portion long-term debt Accrued wages 175 1,007 1,443 ,21 50 10 Current labilities Long-tern dett Owners equity tal liabilities and owners C CI C7 Total current liabiliies Long -term debt Common stock Retained earmings Total labilities and owners equity 1,550 1103 1242 1,434 1275 EXTERNAL RINDING REQUIRED $ 154 TABLE 35 Forecasting wich a Computer Spreadsheet: Pro Forma Financial Forecast for RE Supplies, Inc., December 31, 2015 (5 thousands Table 3.1 in the last chapter presents R&E Supplies financial statements for the period 2011 through 2014, and Table 3.5 presents a pro forma financial forecast for 2015. Use the information in these tables to answer the following questions a Caloulate R&E's sustainable growth rate in each year from 2012 through 2015 b. Comparing the company's sustainable growth rate with its actual and projected growth rates in sales over these years, what growth management problems does R&E appear to face in this Net tales Growth rate in net sale 20,613 25.0% SCost of gods soldhet a Gen, sel, and sdmin expenseshet sales Long-term delt Curment portion long-term debt nterest rate 120% c. How did the company cope with these problems? Do you see any difficulties with the way addressed its growth problems over this period? If so, what are they? d. What advice would you offer management regarding managing future growth? TABLE 21 Finncial Statements 6 r R& E Surple. Ints Demmber 31, 2011-2014 cshusand) $100 10.0% 450% 50.0% 29,0% Dividend/earnings after tax Curment assets het sales Net faed asset Current labiltehet sales 2011 11,190 $16.104 149% Net sales Cost of goods sold Gross profit $13,.74 2,005 XM 161 INCOME STATEMENT Equatians C5 C1 C*C19 1,019 1810 Net isterest expense Eamings before tax Earnings after tax Net sales Cost of goods sokd Gross proft Gen, sel, and admi ex Interest expense Eamings beforetax 25,766 Balance Sheets Current assets Cash and securities Accounts receivae S 671 343 1,789 2.04 Eamings after ta Dividends paid Additions to retained eanings Prepaid expenses Total current assets Net fixed assets Total assets 3275 52 430 BALANCE SHEET Curment assets Net faxed assets Total assets Liabilinies and Owners Equity Current labilites C12 C1 C13 7,472 Bank loan Accounts payable Current portion long-term debt Accrued wages 175 1,007 1,443 ,21 50 10 Current labilities Long-tern dett Owners equity tal liabilities and owners C CI C7 Total current liabiliies Long -term debt Common stock Retained earmings Total labilities and owners equity 1,550 1103 1242 1,434 1275 EXTERNAL RINDING REQUIRED $ 154