what is a sustainable growth rate and return on equity ?

Financial Forecast COMPUTERFIELD CORPORATION Financial Statements Income Statement Balance Sheet Projected 2018 2017 End Assets $500 2018 End projected 2017 End $250 2018 End projected Debt Sales Costs Taxable income Taxes (20%) Net income 2017 $1,000 800 200 40 $160 Equity $250 Total $500 Total $50 Sales grow by 20% Every item increases by 20% Do the numbers add up? How to reconcile? 2 Financial Forecast FINCS COMPUTERFIELD CORPORATION Financial Statements Income Statement Projected 2018 Balance Sheet 2018 End projected Debt 2017 End Assets $3,000 2017 End $1,200 2018 End projected Sales Costs Taxable income Taxes (20%) Net income 2017 $1,000 800 200 40 $160 Equity $1,800 Total $3,000 Total $3,000 Forecast 2018 financial statements Growth vs External financing Fixed Debt-Equity Ratio vs Internal Growth Rate Dividend Payout Ratio Side 3 Financial Forecast COMPUTERFIELD CORPORATION Financial Statements Income Statement Balance Sheet Projected 2018 2017 End Assets $500 2018 End projected 2017 End $250 2018 End projected Debt Sales Costs Taxable income Taxes (20%) Net income 2017 $1,000 800 200 40 $160 Equity $250 Total $500 Total $50 Sales grow by 20% Every item increases by 20% Do the numbers add up? How to reconcile? 2 Financial Forecast FINCS COMPUTERFIELD CORPORATION Financial Statements Income Statement Projected 2018 Balance Sheet 2018 End projected Debt 2017 End Assets $3,000 2017 End $1,200 2018 End projected Sales Costs Taxable income Taxes (20%) Net income 2017 $1,000 800 200 40 $160 Equity $1,800 Total $3,000 Total $3,000 Forecast 2018 financial statements Growth vs External financing Fixed Debt-Equity Ratio vs Internal Growth Rate Dividend Payout Ratio Side 3