Finance- S&S Air Minicase

Finance MiniCase: Planning for get it on at S&S Air 1. encipher the internal developing rove and sustainable growth set up for S&S Air. inbred ripening come away: ROA x b / 1 ROA x b ROA = fire Income/ add Assets = 1, 537,452/ 18,308,920 = .084% B= Addition to unbroken up(p) lolly/ net income= 977,452/ 1,537,452 = .635% national growth position= (.635 * .084) / (1- (.635 * .084)) = .564 This trope is telling us that S&S Air burn down expand at a level best rate of .564% per form without external financing, signification retained earnings ar the only source of financing. sustainable Growth Rate: hard roe x b / 1- hard roe x b ROE = Net Income/ rack up fairness (roa x em = net income/e) = 1,537,452/ 10,069,920 = .15 SGR= (.635 * .15) / 1- (.635 * .15) = .107 This be is telling us that S&S Air place expand at a maximum rate of .107% per year without external equity financing. 2.S&S Air is planning for a growth rate of 12 percent next year. Calculate the EFN for the guild assuming the familiarity is operating at panoptic capacity. Can the companys sales increase at this growth rate?

Pro- Forma Income ascendency (12% Growth Rate) Sales$34,159,350 COGS24,891,530 Other4,331,600 Depreciation1,366,680¬¬¬¬___ EBIT3,569,541 Interest478,240_____ taxable Income3,091,301 Taxes (40%)1,236,520____ Net Income$1,854,780 Dividends675,583 Add to RE1,179,197 Pro-Forma sleep sheet (12 % Growth Rate) Assets Liabilities & Equity Current Assets Current Liabilities notes $ 493,920 Accounts collectable $ 995,680 Accounts rec. 793,408 Notes Payable 2,030,000 history 1,161,574 Total CL $ 3,025,680 Total CA $ 2,448,902 long-term debt $ 5,320,000 shareholder Equity Common tired $ 350,000 Fixed assets retained earnings 10,899,117 Net PP&E $...If you neediness to get a bountiful essay, order it on our website: Ordercustompaper.com

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