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tables below are latest statement of comprehensive income and statement of financial position of ABC Inc

	Statement of Comp. Income
	Sales	6,000
	Costs	3,000
	EBT	3,000
	Taxes (40%)	1,200
	Net Income	1,800
	Dividends	1,200
	Add. To RE	600

	Statement of Financial Position
		Recent		Recent
	ASSETS		LIABILITIES & OWNERS EQUITY
	Current Assets		Current Liabilities
	Cash	1,000	A/P	1,000
	Acc./Receiv.	2,000	Notes/Pay.	3,000
	Inventory	3,000	Total	4,000
	Total	6,000	LT Debt	2,000
	Fixed Assets		Owners Equity
	Net PP&E	6,000	Com Shares	2900
	Total Assets	12,000	RE	3,100
			Total	6,000
			Total L & OE	12000

a) make pro forma statements for the next year based on growth rate of 15%.define the external financing needed? Assume the plan is to keep the retention rate constant, and investment on new assets is 15% of total assets. b) What are the internal growth rate and the sustainable growth rate? c) How much external financing is needed if the plan is to keep the debt to equity ratio constant? (with a sales growth projection of 15%) Whats the new retention rate? d) Calculate the maximum achievable growth rate if the company is allowed to borrow up to $2000 (new debt). Calculate the maximum achievable growth rate if the company can borrow up to $2000 but has to pay at least a 20% dividend (maximum retention rate of 80%).

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