Answer 1: Recent year net income:- 15185 Problem 2 (30 marks): The most recent financial statements for Fleury, Inc., follow. Sales for 2010 are projected to grow by 18 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 18 percent growth rate in sales? Glavine Inc. Income statement 2009 Particulars Sales Costs Other expenses EBIT 1,135,000 817,200 22,200 295,600 30,150 Interest 265,450 Taxable income 84,944 Taxes 180,506 Profit after taxes 50,542 Dividends 129,964 Additions to RE Glavine in Balance sheet Particulars 2009 Particulars 2009 Header Current assets Current liabilities Cash 50,960 Accounts payable 77,700 Accounts receivables 69,980 Notes payable 29,800 Inventor 72.880 107,500 193,820 Long term debt 226,000 Fixed assets Plant and Equipment 530,600 Owner's equity Common stock 192,800 Retained earnings 198,120 390,920 724,420 Total assets 724,420 Problem 3 (30 marks)