The most recent financial statements for Mandy Company are shown here: Income StatementBalance SheetSales$ 19,200Current assets$ 11,760Debt$ 15,880Costs13,050Fixed assets27,450Equity23,330 Taxable income$ 6,150Total$ 39,210Total$ 39,210 Taxes (24%)1,476 Net income$ 4,674 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

Net income = $4674 Total assets = $39210 Total equity = $23,330 Payout ratio = 45%

Answered: The most recent financial statements…

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 18BEA

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The most recent financial statements for Mandy Company are shown here:

Income Statement	Balance Sheet
Sales	$ 19,200	Current assets	$ 11,760	Debt	$ 15,880
Costs	13,050	Fixed assets	27,450	Equity	23,330

Taxable income	$ 6,150	Total	$ 39,210	Total	$ 39,210

Taxes (24%)	1,476

Net income	$ 4,674

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. What is the internal growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded 2 decimal places, e.g., 32.16.)

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