The Excel file attached contains the Balance Sheet and Income Statement for ABC Corp. ABC Corp is currently planning for next year's sales and asked their financial analysts to prepare financial plan for the next year so the company can begin to address any outside investment requirements.

Calculate the internal growth rate and sustainable growth rate for ABC Corp. What do these numbers mean?

Income Statement Sales COGS Other expenses Depreciation EBIT Interest Taxable income Taxes (40%) Net income II Dividends Add to RE $80,518,460 $58,672,892 -$10,210,200 -$3,608,440 $8,026,928 -$1,261,040 $6,765,888 $2,706,355 $4 059 533 $1,220,000 $2,839,533 Financials Balance Sheet Assets Current assets Cash $912,870 Accounts rec. $1,466,250 Inventory $2,146,360 Total CA $4,525,480 Fixed assets Net PP&E $35,446,860 Total Assets $39 972 340 Liabilities and Equity Current liabilities Accounts payable Notes payable Total CL Long-term debt Shareholder equity Common stock Retained earnings Total equity Total L&E Page 1 $1,858,010 $4,242,700 $6,100,710 $11,000,000 $800,000 $22,071,630 $22,871,630 $39 972 340 I#