The latest income statement, balance sheet and other related information for Prado Company is as follows: Net Sales Revenue = $1,200,000 COGS = $840,000 Operating Expenses = $120,000 Interest Expense = 522,000 Tax Expense = $43,600 Addition to Retained Earnings = $104,640 Current Assets - $900,000 Net Fixed Assets = $1,080,000 Current Liabilities = $240,000 Long Term Debt = $220,000 Common Stock = $520,000 Retained Earnings = $1,000,000 1. Given the existing information, the Sustainable Growth Rate is (please round to the nearest integer percentage such as 5) From now on, please assume that the company's sales will grow at 8% for the following year. Estimate the following regarding the proforma statements. 2. The proforma EBIT is $ 96 3. The initial proforma Interest Expense estimation (beginning of first iteration, remember Butler Lumber) is $ 4. Assuming the same tax rate, the proforma net income is s 5. Assuming the same plowback ratio, the proforma addition to retained earnings is $ 6. Assuming 100% capacity usage, the proforma TOTAL assets are s 7. The proforma current liabilities are $ 8. The proforma retained earnings are $ 9. The External Financing Need is s 10. Assuming the EFN will be fulfilled by increasing the LTD, the proforma LTD (to balance the balance sheet) is $ 11. With the updated LTD you just calculated, assuming a 10% interest rate, the corrected interest expense (end of first iteration) is $ 12. If the current capacity usage is at 80%, then the proforma net fixed assets are $ The latest income statement, balance sheet and other related information for Prado Company is as follows: Net Sales Revenue = $1,200,000 COGS = $840,000 Operating Expenses = $120,000 Interest Expense = 522,000 Tax Expense = $43,600 Addition to Retained Earnings = $104,640 Current Assets - $900,000 Net Fixed Assets = $1,080,000 Current Liabilities = $240,000 Long Term Debt = $220,000 Common Stock = $520,000 Retained Earnings = $1,000,000 1. Given the existing information, the Sustainable Growth Rate is (please round to the nearest integer percentage such as 5) From now on, please assume that the company's sales will grow at 8% for the following year. Estimate the following regarding the proforma statements. 2. The proforma EBIT is $ 96 3. The initial proforma Interest Expense estimation (beginning of first iteration, remember Butler Lumber) is $ 4. Assuming the same tax rate, the proforma net income is s 5. Assuming the same plowback ratio, the proforma addition to retained earnings is $ 6. Assuming 100% capacity usage, the proforma TOTAL assets are s 7. The proforma current liabilities are $ 8. The proforma retained earnings are $ 9. The External Financing Need is s 10. Assuming the EFN will be fulfilled by increasing the LTD, the proforma LTD (to balance the balance sheet) is $ 11. With the updated LTD you just calculated, assuming a 10% interest rate, the corrected interest expense (end of first iteration) is $ 12. If the current capacity usage is at 80%, then the proforma net fixed assets are $
