business Tutor5th & final questionApex Roofing Inc. has the following balance sheet (in millions of dollars):Current assets $3.0 Net fixed assets 4.0 Total assets $7.0 Accounts payable $1.2 Notes payable 0.8 Accrued wages and taxes 0.3 Long-term debt 1.2Common equity 1.5Retained earnings 2.0Total liabilities & equities $7.0 Last year's sales were $10 million, and Apex estimates it will need to raise $2 million in new debt and equity next year. You have identified the following facts: (1) it pays out 30% of earnings as dividends; (2) a profit margin of 4% is projected; (3) fixed assets were used to full capacity; and (4) assets and spontaneous liabilities as shown on last year's balance sheet are expected to grow proportionally with sales. If the above assumptions hold, what sales growth rate is the firm anticipating? (Hint: You can use the AFN formula to help answer this problem.)
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