bbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales and expenses increase by 14% in 2019 and all assets and liabilities increase correspondingly.   Income Statement   Sales $ 7,000 Costs, including interest   5,000 Net income $ 2,000     Balance Sheet, Year-End   2018   2017     2018   2017 Net assets $ 6,125   $ 5,700   Debt $ 2,625   $ 2,533               Equity   3,500     3,167 Total $ 6,125   $ 5,700   Total $ 6,125   $ 5,700     a. If the payout ratio is set at 65% and no external debt or equity is to be issued, what is the maximum possible growth rate for Archimedes? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)     b. If the payout ratio is set at 65% and the firm maintains a fixed debt ratio but issues no equity, what is the maximum possible growth rate for Archimedes? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Garlington Technologies Inc.'s 2019 financial statements are shown below: Income Statement for December 31, 2019 Sales $4,000,000 Operating costs 3,200,000  EBIT $  800,000 Interest 120,000  Pre-tax earnings $  680,000 Taxes (25%) 170,000 Net income 510,000 Dividends $  190,000 Balance Sheet as of December 31, 2019 Cash $   160,000   Accounts payable $   360,000 Receivables 360,000   Line of credit 0 Inventories 720,000   Accruals 200,000  Total CA $1,240,000    Total CL $   560,000 Fixed assets 4,000,000   Long-term bonds 1,000,000  Total Assets $5,240,000   Common stock 1,100,000       RE 2,580,000        Total L&E $5,240,000 Suppose that in 2020 sales increase to $4.2 million and that 2020 dividends will increase to $226,000. Forecast the financial statements using the forecasted financial statement method. Assume the firm operated at full capacity in 2019. The long-term bonds have an interest rate of 14%. New financing will be with a line…

The 2019 financial statements for Growth Industries are presented below.   INCOME STATEMENT, 2019 Sales       $ 370,000   Costs         235,000   EBIT       $ 135,000   Interest expense         27,000   Taxable income       $ 108,000   Taxes (at 21%)         22,680   Net income       $ 85,320   Dividends $ 51,192         Addition to retained earnings $ 34,128              BALANCE SHEET, YEAR-END, 2019   Assets         Liabilities       Current assets         Current liabilities       Cash $ 6,000     Accounts payable $ 13,000   Accounts receivable   11,000     Total current liabilities $ 13,000   Inventories   33,000     Long-term debt   270,000   Total current assets $ 50,000     Stockholders’ equity       Net plant and equipment   310,000     Common stock plus additional paid-in capital   15,000             Retained earnings   62,000   Total assets $ 360,000     Total liabilities plus stockholders' equity $ 360,000        Sales and…

CASE4: Sally Manufacturing company had sales totaling $40,000,000 in fiscal year 2020. Some ratios for the company are listed below. Use this information to determine the $ value of various income statement and balance sheet accounts as required.   Sally Manufacturing Company Year ended December 31, 2020 Gross profit margin 80% Operating profit margin 35% Net profit margin 8% Return on assets 16% Return on equity 20% Total asset turnover 2 Average collection period 62.2 days   Calculate values and discuss for the following: Gross profits Cost of goods sold Operating profits Earnings available for common stockholders Total assets Account receivable