The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $13,000 Current assets $28,032 Debt $27,628 Costs 7,800 Fixed assets 19,616 Equity 20,020 Taxable income $5,200 Total $47,648 Total $47,648 Taxes (22%) 1,144 Net income $4,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio.
The most recent financial statements for Bello Co. are shown here: Income Statement Balance Sheet Sales $13,000 Current assets $28,032 Debt $27,628 Costs 7,800 Fixed assets 19,616 Equity 20,020 Taxable income $5,200 Total $47,648 Total $47,648 Taxes (22%) 1,144 Net income $4,056 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Question
The most recent financial statements for Bello Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $13,000 | Current assets | $28,032 | Debt | $27,628 |
Costs |
7,800 |
Fixed assets | 19,616 | Equity | 20,020 |
Taxable income | $5,200 | Total |
$47,648 |
Total |
$47,648 |
Taxes (22%) | 1,144 | ||||
Net income |
$4,056 |
||||
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 36 percent dividend payout ratio. |
What is the sustainable growth rate? |
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