7. The most recent financial statements for Fleur-de-Lis Corporation follow. Analysts project sales for 2019 to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, 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? Round dollar amounts to the nearest whole dollar.

Fleur-de-Lis Corporation 2018 Income Statement

Sales $743,000

Costs $578,00

Other Expenses $15,200

EBIT $149,800

Interest Paid $11,200

Taxable Income $138,600

Taxes $48,510

Net Income $90,090

Dividends $27,027

Addition to RE $63,063

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Fleur-de-Lis Corporation 2018 Balance Sheet

Current Assets:

Cash $20,240

Accounts receivable $32,560

Inventory $69,520

Total Current $122,320

Fixed Assets:

Net Plant & Equip $330,400

Total Assets $452,720

Current Liabilities:

Accounts Payable $54,400

Notes Payable $13,600

Total Current $68,000

Long-Term Debt $126,000

Owner's Equity:

Common Stock $112,000

Retained Earnings $146,720

Total $258,720

Total $452,720

8. Suppose Fleur-de-Lis Corporation was operating at only 80 percent capacity in 2018. What is EFN if they cannot reduce their fixed assets? What is EFN if they can reduce their fixed assets?