Problem 3-20 Calculating Internal Growth [LO 3]

The most recent financial statements for Minnie's Manufacturing Co. are shown below:

Income Statement			Balance Sheet
Sales	$	99,600	Current assets	$	39,000	Debt	$	50,400
Costs		70,350	Fixed assets		97,400	Equity		86,000
Taxable income	$	29,250	Total	$	136,400	Total	$	136,400
Tax (25%)		7,313
Net Income	$	21,938

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 45 percent dividend payout ratio. No external financing is possible.

What is the ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

What is the internal growth rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)