Question
The most recent financial statements for Shinoda Manufacturing Co. are shown below: Income Statement Balance Sheet Sales $ 63,600 Current assets $ 25,000 Debt $
The most recent financial statements for Shinoda Manufacturing Co. are shown below:
Income Statement | Balance Sheet | |||||||
Sales | $ | 63,600 | Current assets | $ | 25,000 | Debt | $ | 41,200 |
Costs | 44,980 | Fixed assets | 77,900 | Equity | 61,700 | |||
Taxable income | $ | 18,620 | Total | $ | 102,900 | Total | $ | 102,900 |
Tax (35%) | 6,517 | |||||||
Net Income | $ | 12,103 | ||||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 37 percent dividend payout ratio. No external financing is possible. What is the ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ROA % What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal growth rate %
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