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Your company's most recent income statement and balance sheet are given below: Income statement ($ million) Balance sheet ($ million) Sales 23 Current assets 14

Your company's most recent income statement and balance sheet are given below:

Income statement ($ million) Balance sheet ($ million)
Sales 23 Current assets 14 Debt 21
Costs 18.4 Fixed assets 56 Equity 49
Net income 4.6 Total assets 70 Total 70

Sales, assets and costs are expected to grow by the same rate next year. The company is expected to pay NO dividends next year.

Part 1

What is the internal growth rate? What is the sustainable growth rate?

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