Instructions #1 Answer #2 Answer #3 Answer #4 Answer #5 Answer 4. Calculate the sustainable growth rate for East Coast Yachts. Calculate the EFN and prepare pro forma income statements and balance sheets assuming growth at precisely this rate. Recalculate the ratios in the previous question. What do you observe? Sustainablc Growth Ratc The sustainable growth rate is the growth rate the company can achieve with no extermal financing while maintaining a constant debt-equity ratio. At the sustainable growth rate, the pro forma statements next year will be: East Cost Yachts 2017 Balance Sheet Income statement Salcs COGS Other cxpenscs Depreciation EBIT Interest Taxablc incomc Taxes (4096) Net inconc Current Assets Cash and cquivalents Accounts reccivable Inventory Other Total current asscts Fixed asscts Dividends Add to RE Total assets Instructions #1 Answer #2 Answer #3 Answer #4 Answer #5 Answer 4. Calculate the sustainable growth rate for East Coast Yachts. Calculate the EFN and prepare pro forma income statements and balance sheets assuming growth at precisely this rate. Recalculate the ratios in the previous question. What do you observe? Sustainablc Growth Ratc The sustainable growth rate is the growth rate the company can achieve with no extermal financing while maintaining a constant debt-equity ratio. At the sustainable growth rate, the pro forma statements next year will be: East Cost Yachts 2017 Balance Sheet Income statement Salcs COGS Other cxpenscs Depreciation EBIT Interest Taxablc incomc Taxes (4096) Net inconc Current Assets Cash and cquivalents Accounts reccivable Inventory Other Total current asscts Fixed asscts Dividends Add to RE Total assets