The most recent financial statements for Shinoda Manufacturing Co. are shown below. Balance Sheet Income Statement Sales Costs Taxable income Tax (35%) $64,200 Current assets 44,680 $19,520 6,832 Fixed assets Total $ 28,000 Debt 80,900 Equity $108,900 Total $ 44,200 64,700 $ 108,900 Net Income $ 12,688 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 43 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate
The most recent financial statements for Shinoda Manufacturing Co. are shown below. Balance Sheet Income Statement Sales Costs Taxable income Tax (35%) $64,200 Current assets 44,680 $19,520 6,832 Fixed assets Total $ 28,000 Debt 80,900 Equity $108,900 Total $ 44,200 64,700 $ 108,900 Net Income $ 12,688 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 43 percent dividend payout ratio. No external equity financing is possible. What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Sustainable growth rate
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.1E
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Question
![The most recent financial statements for Shinoda Manufacturing Co. are shown below.
Income Statement
Sales
Balance Sheet
Costs
$ 64,200
44,680
Current assets
Fixed assets
Taxable income
Tax (35%)
$19,520
6,832
Total
$ 28,000 Debt
80,900 Equity
$108,900 Total
$ 44,200
64,700
$108,900
Net Income
$ 12,688
ok
ht
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 43 percent dividend payout
ratio. No external equity financing is possible.
What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Sustainable growth rate
1%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F045f60be-3920-49f7-9446-829a84c882be%2F70f1bb16-9e4a-4248-864c-817939f8c723%2Fog3s2ij_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The most recent financial statements for Shinoda Manufacturing Co. are shown below.
Income Statement
Sales
Balance Sheet
Costs
$ 64,200
44,680
Current assets
Fixed assets
Taxable income
Tax (35%)
$19,520
6,832
Total
$ 28,000 Debt
80,900 Equity
$108,900 Total
$ 44,200
64,700
$108,900
Net Income
$ 12,688
ok
ht
Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 43 percent dividend payout
ratio. No external equity financing is possible.
What is the sustainable growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
Sustainable growth rate
1%
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