***URGENT***

Maggies Muffins, Inc., generated $5,000,000 in sales during 2015, and its year-end total assets were $2,500,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2016, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 7%, and its payout ratio will be 80%. How large a sales increase can the company achieve without having to raise funds externallythat is, what is its self-supporting growth rate?

PLEASE SHOW ALL WORK

A B D E F G H 3 5.00% Start with a value of 5 percent to allow you to calculate the AFN in cell C18 5 1 Problem 9-4 2 3 INPUT 4 Sales growth rate 5 Sales 2015 6 Assets 2015 7 Accounts payable 2015 8 Notes payable 2015 9 Accruals 2015 10 Profit margin 11 Dividend payout ratio 12 13 OUTPUT 14 Self Supporting Growth Rate 15 M(1-POR)S. 16 A*.-L*-M(1-POR)S. 17 Complete the self supporting growth rate calculation here - use two decimal places in your answer 18 Create the AFN formula using 5 percent growth as initially assumed in INPUTS. Then use goal seek with AFN as reviewed in the video content to solve for the self supporting AFN 19 20 21 Chapter 9 - Problem 4: Change the dividend payout ratio in cell C11 from 80% to 8696. Record the new calculated value of the self-supporting growth rate visible in cell C14 in the space provided below. [Format the value as a number with two decimal places. For example, 12.34 for 12.34 percent] A B D E F G H 3 5.00% Start with a value of 5 percent to allow you to calculate the AFN in cell C18 5 1 Problem 9-4 2 3 INPUT 4 Sales growth rate 5 Sales 2015 6 Assets 2015 7 Accounts payable 2015 8 Notes payable 2015 9 Accruals 2015 10 Profit margin 11 Dividend payout ratio 12 13 OUTPUT 14 Self Supporting Growth Rate 15 M(1-POR)S. 16 A*.-L*-M(1-POR)S. 17 Complete the self supporting growth rate calculation here - use two decimal places in your answer 18 Create the AFN formula using 5 percent growth as initially assumed in INPUTS. Then use goal seek with AFN as reviewed in the video content to solve for the self supporting AFN 19 20 21 Chapter 9 - Problem 4: Change the dividend payout ratio in cell C11 from 80% to 8696. Record the new calculated value of the self-supporting growth rate visible in cell C14 in the space provided below. [Format the value as a number with two decimal places. For example, 12.34 for 12.34 percent]