what happens if growth is higher or lower? what happes to cash? we will assume that the major asset and liability categories stay the same percentage of sales, except for cash and shareholders equity. change the growth rate in the following excel spreadsheet from 0% to 10% and see how the income statement and balance sheet change (you will need to enter 1 for 10, into the cell

Assumed Growth Rate Year 2 Year 1 Income Statement $100.0 $100.0 Sales $60.0$60.0 $40.0$40.0 S20.0 $20.0 $20.0$20.0 $6.0 $14.0$14.0 4Cost of Goods Sold 5 Gross Margin 6 Selling, General and Administrative 7 Operating Profits 8 Tax [corporate tax rate times Operating Profits] 9 After-Tax Operating Profits 10 11 Balance Sheet 12 Assets 13 Transactions Cash 14 Excess Cash 15 Inventory $6.0 Year 1 Year 2 $1.0 $1.0 0.0$14.0 $12.0 $150 $15.0 $20.0 $480 $620 $12.0 16 Accounts Receivable 17 Net Property Plant & Equipment (NPPE) $20.0 18 Total Assets 19 20 Liabilities Year 1 Year 2 $12.0 $36.0 $48.0 21 Accounts Payable $12.0 $50.0 $62:0 22 Shareholders Equity 23 Total Liabilities 24