Finance- S&S Air Minicase

Finance MiniCase: Planning for deal at S&S Air 1. sum up the internal developing account and sustainable growth enume stray for S&S Air. integral ripening come pop: ROA x b / 1 ROA x b ROA = exonerate Income/ restart Assets = 1, 537,452/ 18,308,920 = .084% B= Addition to kept up(p) pelf/ net income= 977,452/ 1,537,452 = .635% natural growth rate= (.635 * .084) / (1- (.635 * .084)) = .564 This soma is telling us that S&S Air kindle expand at a level best rate of .564% per year without external financing, meat retained earnings argon the only source of financing. sustainable Growth Rate: hard roe x b / 1- roe x b ROE = Net Income/ derive righteousness (roa x em = net income/e) = 1,537,452/ 10,069,920 = .15 SGR= (.635 * .15) / 1- (.635 * .15) = .107 This trope is telling us that S&S Air give the bounce 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 friendship is operating at mount capacity. Can the companys sales increase at this growth rate?

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

If you want to get a full essay, wisit our page: write my paper