Table 3.1 in the last chapter presents R&E Supplies financial statements for the period 2011 through 2014,

Question:

Table 3.1 in the last chapter presents R&E Supplies’ for the period 2011 through 2014, and Table 3.5 presents a pro forma financial forecast for 2015. Use the information in these tables to answer the following questions.
a. Calculate R&E’s sustainable growth rate in each year from 2012through 2015.
b. Comparing the company’s sustainable growth rate with its actual and projected growth rates in sales over these years, what growth management problems does R&E appear to face in this period?
c. How did the company cope with these problems? Do you see any difficulties with the way it addressed its growth problems over this period? If so, what are they?
d. What advice would you offer management regarding managing future growth? Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...