Chapter 4 Problem 10
a. Use the information below from Tournment Sporting Goods's annual financial statements to calculate the actual and sustainable growth rate for each year from 2010 - 2014.
b. Do you think Tournment Sporting Goods is having a problem financing its growth? Is the increase in dividends a good idea for the company?
Tournment Sporting Goods ($ in thousands)
	2009	2010	2011	2012	2013	2014
Sales	477.84	491.62	706.52	792.01	876.52	1,088.46
Net income	-	43.27	26.31	38.48	44.84	25.76
Total assets	-	477.06	648.42	664.26	697.16	982.63
Equity	-	346.32	426.01	465.85	432.91	553.27
Dividends	-	-	-	0.80	1.65	2.22

								Notes:
Chapter 4 Problem 10 Suggested Answers								One: Only enter answers into the "Green" Cells.
Tournament Sporting Goods ($ in thousands)								Two: You MUST use the Excel Formulas, do NOT simply put a number in the answer cell.
Repeat Given Info:	2009	2010	2011	2012	2013	2014		Three: A few Cells may have some guidance to help you with the answers.
Sales	477.84	491.62	706.52	792.01	876.52	1,088.46
Net income		43.27	26.31	38.48	44.84	25.76
Total assets		477.06	648.42	664.26	697.16	982.63
Equity		346.32	426.01	465.85	432.91	553.27
Dividends				0.80	1.65	2.22	Cell G9 Check Figure = 2.22
a. Sustainable growth calculation:
Profit margin							Cell G12 Check Figure = 2.37%
Retention ratio
Asset turnover
Financial leverage
Sustainable growth (g*)
Actual growth		N/A
g*-g							Cell G18 Check Figure = -18.74%
Part B: