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Item 3 25 points Assume the following ratios are constant: Total asset turnover 2 Profit margin 5.3 % Equity multiplier 1.

Item 3 25 points

Assume the following ratios are constant:

 

 

 

 

 

Total asset turnover

 

2

 

Profit margin

 

5.3

%

Equity multiplier

 

1.3

 

Payout ratio

 

30

%

 

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

  

Sustainable growth rate         %

 

Item 4 25 points

Prepare a 2017 balance sheet for Jarrow Corp. based on the following information: cash = $137,000; patents and copyrights = $630,000; accounts payable = $216,000; accounts receivable = $130,000; tangible net fixed assets = $1,645,000; inventory = $298,000; notes payable = $150,000; accumulated retained earnings = $1,258,000; long-term debt = $855,000. (Do not round intermediate calculations. Be sure to list the accounts in order of their liquidity.)

  

JARROW CORP.

Balance Sheet

Assets

 

 

 

$

 

 

 

 

 

 

 

Current assets

$

 

 

 

 

 

 

 

Total assets

$

 

Liabilities & Equity

 

 

 

 

$

 

 

 

 

Current liabilities

$

 

 

 

 

Total liabilities

$

 

 

 

 

 

 

 

Total liabilities & owners' equity

$

 

 

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