Question: I just need the answer for question 16, part b, c, and e! thank you! LO 3 14. Sustainable Growth Assuming the following ratios are
LO 3 14. Sustainable Growth Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover =2.95 Profit margin 5.9% Equity multiplier =1.31 Payout ratio 40% Bethesda Mining Company reports the following balance sheet information for 2018 and 2019. Use this information to work Problems 15 through 17. 2019 2019 BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2018 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,182 $ 24,141 Accounts payable $180, 108 Accounts receivable 51,036 59.935 Notes payable 83,179 Inventory 120.589 142,718 Total $263,287 Total $192.807 $226,794 Long-term debt $305,000 Owners' equity Common stock and paid-in surplus $165,000 Fixed assets Accumulated retained earnings 235.445 Net plant and equipment $775.925 $863.726 Total $400,445 Total assets $968,732 $1,090,520 Total liabilities and owners' equity $968,732 $190,767 98.175 $288,942 $340,000 $178,000 283,578 $461,578 $1.090.520 LO1 LO 2 LO 3 15. Preparing Standardized Financial Statements Prepare the 2018 and 2019 common-size balance sheets for Bethesda Mining. 16. Calculating Financial Ratios Based on the balance sheets given for Bethesda Mining, calculate the following financial ratios for each year. a. Current ratio b. Quick ratio c. Cash ratio d. Debt-equity ratio and equity multiplier e. Total debt ratio 17. DuPont Identity Suppose that the Bethesda Mining Company had sales of $2.751,332 and net income of $86,432 for the year ending December 31. 2019. Calculate the DuPont identity. 18. DuPont Identity The Taylor Company has an ROA of 7.6 percent, a profit margin of 5.2 percent, and an ROE of 14 percent. What is the company's total asset turnover? What is the equity multiplier? 19. Return on Assets Borland. Inc., has a profit margin of 5.6 percent on sales of $13.6 million. If the firm has debt of $6.4 million and total assets of $9.8 million, what is the firm's ROA? 20. Calculating Internal Growth The most recent financial statements for Minnie's Manufacturing Co. are shown here: LO 3 LO 2 LO 3
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