14. Calculating EFN CLO2 The most recent financial statements for Fleury, Inc., follow. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? FLEURY, INC. 2011 Income Statement $743,000 Sales 578,000 Costs 15,200 Other expenses $149,800 Earnings before interest and taxes 11,200 Interest paid $138,600 Taxable income 48,510 Taxes 90,090 Net income $27,027 Dividends 63,063 Addition to retained earnings FLEURY, INC. Balance Sheet as of December 31, 2011 Liabilities and owners' Equity Assets Current liabilities Current assets 54,400 20,240 Accounts payable Cash 13.600 32,560 Notes payable Accounts receivable 68,000 Total 69,520 Inventory $126,000 $122,320 Long-term debt Total Owners' equity Fixed assets Common stock and paid-in surplus $112,000 Net plant and equipment $330,400 146,720 Retained earnings $258,720 Total $452,720 Total liabilities and owners' equity Total assets