For this assignment, you will use MS Excel files containing the$$Balance Sheet$$and$$Income Statement$$for ABC Corp.$$ ABC Corp is currently planning for next year's sales and asked their financial analysts to prepare a financial plan for the next year so the company can begin to address any outside investment requirements.

Calculate the internal growth rate and sustainable growth rate for ABC Corp. What do these numbers mean?

The product and marketing departments at ABC Corp are estimating a growth rate of $15$ percent for next year. Consider the two distinct scenarios below:

Assume fixed assets increase proportionally to sales and will be depreciated at a similar rate to existing fixed assets.Assume that, to increase production, ABC Corp must set up an entirely new location at a cost of $$10,000,000.$ The new fixed assets will be depreciated at $10\%$ a year.

Given the scenarios above:

Calculate the EFN for the company for each of the scenarios assuming the company is operating at full capacity today $($i$.$e$.100\%$ utilization$).$ Can the company's sales increase at this growth rate? What will be the capacity utilization for the company next year?Discuss the methodology used above. What would you likely change if you operated in an environment in which certain balance sheet items don$$t vary proportionally with sales?