1 2 A 3 4 Input area: 5 6 7 8 Taxable income 9 Taxes 10 11 Current assets 12 Fixed assets 13 Total 14 Payout ratio 15 Tax rate Sales Costs Net income B 19 Output area: 20 21 Return on assets 22 Retention ratio 23 Internal growth rate C The most recent financial statements for Mandy Co. are shown here. Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate? $16,400 11,200 $5,200 1,092 $4,108 $11,200 Debt 24,300 Equity $35,500 Total 30% 21% D E $13,600 21,900 $35,500 F G 16 17 (Use cells A6 to D15 from the given information to complete this question.) 18 H

The most recent financial statements for Mandy Co. are shown here. Assets and costs are 2 proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. What is the internal growth rate? 7 (Use cells A6 to D15 from the given information to complete this question.)