Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the year the company had total assets of $375,000. During the year, the company sold no new equity. Net income for the year was $46,000 and dividends were $6,800. a. Calculate the internal growth rate for the company. (Do not round intermediate b. Calculate the internal growth rate using ROA x b for beginning of period total assets. c. Calculate the internal growth rate using ROA x b for end of period total assets. (Do calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the year the company had total assets of $375,000. During the year, the company sold no new equity. Net income for the year was $46,000 and dividends were $6,800. a. Calculate the internal growth rate for the company. (Do not round intermediate b. Calculate the internal growth rate using ROA x b for beginning of period total assets. c. Calculate the internal growth rate using ROA x b for end of period total assets. (Do calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...
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Question
![Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the year
the company had total assets of $375,000. During the year, the company sold no new
equity. Net income for the year was $46,000 and dividends were $6,800.
a. Calculate the internal growth rate for the company. (Do not round intermediate
b. Calculate the internal growth rate using ROA x b for beginning of period total assets.
c. Calculate the internal growth rate using ROA x b for end of period total assets. (Do
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05054baf-9780-47fd-af98-02618d62abe4%2Fbaa72135-3802-4af3-9bf1-a0be3be7d1cf%2Fcnjnmdb.jpeg&w=3840&q=75)
Transcribed Image Text:Gilmore, Inc., had equity of $220,000 at the beginning of the year. At the end of the year
the company had total assets of $375,000. During the year, the company sold no new
equity. Net income for the year was $46,000 and dividends were $6,800.
a. Calculate the internal growth rate for the company. (Do not round intermediate
b. Calculate the internal growth rate using ROA x b for beginning of period total assets.
c. Calculate the internal growth rate using ROA x b for end of period total assets. (Do
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
(Do not round intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
not round intermediate calculations and enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)
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