Calculate the actual percentage change in sales

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Go to https://fi nance.yahoo.com or another financial Web site, and download the most recent two years' balance sheets and income statements for a firm of your choice. Do not choose a firm that issued or retired a significant amount of common stock in either year.

a. Calculate the actual percentage change in sales from two years ago to last year.

b. Using the balance sheet and income statement from two years ago, calculate the firm's sustainable growth rate.

c. If the sustainable growth rate does not equal the actual growth rate in sales, explain how changes in the firm's financial ratios in the second year reflected the firm's decision in the previous year to grow at a rate other than the sustainable rate.

Reference no: EM131316959

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