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The most recent financial statements for Mandy Company are shown below: Balance Sheet $35,500 Debt 95,300 Equity $ 130,800 Total Income Statement Sales Costs Taxable income Tax (23%) Net Income $ 95,400 Current assets Fixed assets 68,250 $ 27,150 6,245 Total $ 20,905 Internal growth rate Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 46,200 84,600 $ 130,800 %

The most recent financial statements for Mandy Company are shown below: Balance Sheet $35,500 Debt 95,300 Equity $ 130,800 Total Income Statement Sales Costs Taxable income Tax (23%) Net Income $ 95,400 Current assets Fixed assets 68,250 $ 27,150 6,245 Total $ 20,905 Internal growth rate Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 46,200 84,600 $ 130,800 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The most recent financial statements for Mandy Company are shown below: Balance Sheet $35,500 Debt 95,300 Equity Total $ 130,800 Income Statement Sales Costs Taxable income Tax (23%) Net Income $ 95,400 Current assets 68,250 Fixed assets Total Internal growth rate $ 27,150 6,245 $ 20,905 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 46,200 84,600 $ 130,800 %
Transcribed Image Text:The most recent financial statements for Mandy Company are shown below: Balance Sheet $35,500 Debt 95,300 Equity Total $ 130,800 Income Statement Sales Costs Taxable income Tax (23%) Net Income $ 95,400 Current assets 68,250 Fixed assets Total Internal growth rate $ 27,150 6,245 $ 20,905 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external financing is possible. What is the internal growth rate? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. $ 46,200 84,600 $ 130,800 %
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