Using the financial data from Cape Karate Sporting Goods Ltd , answer the following questions regarding Cape Karates growth management challenges CAPE KARATE SPORTING GOODS LTD FINANCIAL DATA (Rand in thousands) 2017 2018 2019 2020 2021 Sales 475 00 715 00 810 00 905 00 1,100 00 Net income 40 50 25 75 35 50 47 50 27 50 Total assets 480 50 660 00 675 00 725 00 925 00 Equity 345 00 435 00 455 00 440 00 560 00 Dividends 0 00 0 00 0 85 1 65 2 30 Required a Use the information below from Tournament Sporting Goodss annual financial statements to calculate the actual and sustainable growth rate for each year from 2018 to 2021 (8 marks) b Do you think Tournament Sporting Goods is having a problem financing its growth Is the increase in dividends a good idea for the company (2 marks)

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Question: Using the financial data from Cape Karate Sporting Goods Ltd., answer the following questions regarding Cape Karates growth management challenges. CAPE KARATE SPORTING GOODS LTD

Using the financial data from Cape Karate Sporting Goods Ltd., answer the following questions regarding Cape Karates growth management challenges.

CAPE KARATE SPORTING GOODS LTD

FINANCIAL DATA (Rand in thousands)
	2017	2018	2019	2020	2021
Sales	475.00	715.00	810.00	905.00	1,100.00
Net income	40.50	25.75	35.50	47.50	27.50
Total assets	480.50	660.00	675.00	725.00	925.00
Equity	345.00	435.00	455.00	440.00	560.00
Dividends	0.00	0.00	0.85	1.65	2.30

Required:

a. Use the information below from Tournament Sporting Goodss annual financial statements to calculate the actual and sustainable growth rate for each year from 2018 to 2021. (8 marks)

b. Do you think Tournament Sporting Goods is having a problem financing its growth? Is the increase in dividends a good idea for the company? (2 marks)

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