Table presents R&E Supplies' financial statements for the period through and Table presents a pro forma financial
forecast for Use the information in these tables to answer the following questions.
Calculate R&Es sustainable growth rate in each year from through Assume the dividend payout ratio was the same in
to as forecasted in
Note: Round each step and the final answers to decimal place.
TABLE Forecasting with a Spreadsheet: Pro Forma Financial Forecast for R&E Supplies, Incorporated, December
$ thousands
Year
A
Net sales
Growth rate in net sales
Cost of goods soldnet sales
General, selling, and administrative expensesnet sales
Longterm debt
Current portion longterm debt
Interest rate
Tax rate
Dividendearnings after tax
Current assetsnet sales
Net fixed assets
Current liabilitiesnet sales
Owners' equity
