What's the Pro Forma?

Problem 8 : sustainable growth rate
ROE		0.1355
Ret rate (b)		0.70
ROE x b		0.0949
1 - (ROE x b)		0.9051
(ROE x b)/[1 - (ROE x b)]		0.1048

sustainable growth rate
		Percentage
		of Sales	Actual		Pro Forma
Income Statement
Sales			49,000
Expenses		0.7653	37,500
Net income before tax			11,500
Income tax (34%)			3,910
Net income after tax			7,590
Balance Sheet
Working capital		0.429	21,000
Net fixed assets		1.755	86,000
Total assets		2.184	107,000
Debt			51,000
Equity			56,000
Capital			107,000
Debt ratio			0.4766