Assumptions: The firm is operating at full capacity. Sales are expected to increase by 22%. Interest expense will remain constant. Tax rate and dividend payout ratio remain constant. COGS, other expenses, cash, inventory, net fixed assets, and accounts payable increase with sales. Receivables will be 4% of sales. Determine EFN. Assume external funds will be raised as follows: 25% notes payable, 25% long-term debt, and 50% common stock. Income Statement for Fleury, Inc. Year Ended December 31, 2020 Forecast Sales $743,000 COGS $578,000 Other expenses $ 15.200 EBIT $149,800 Interest $ 11,200 EBT $138,600 Taxes $ 48,510 Net income $ 90,090 Dividends $ 18,018 Add. to Retained Earnings $ 72.072 Balance Sheet for Fleury, Inc. of December 31, 2020 Cash Receivables Inventory Total current assets Net fixed assets $ 20.240 $ 32.560 $ 69.520 $122,320 $330,400 Total assets $452,720 Accounts payable $ 54,400 Notes payable $ 13,600 Total current liabilities $ 68,000 Long-term debt $126,000 Total debt $194,000 Common stock Retained Earnings Total Common equity $112,000 $146,720 $258,720 Total liabilities & equity $452,720 Assumptions: The firm is operating at full capacity. Sales are expected to increase by 22%. Interest expense will remain constant. Tax rate and dividend payout ratio remain constant. COGS, other expenses, cash, inventory, net fixed assets, and accounts payable increase with sales. Receivables will be 4% of sales. Determine EFN. Assume external funds will be raised as follows: 25% notes payable, 25% long-term debt, and 50% common stock. Income Statement for Fleury, Inc. Year Ended December 31, 2020 Forecast Sales $743,000 COGS $578,000 Other expenses $ 15.200 EBIT $149,800 Interest $ 11,200 EBT $138,600 Taxes $ 48,510 Net income $ 90,090 Dividends $ 18,018 Add. to Retained Earnings $ 72.072 Balance Sheet for Fleury, Inc. of December 31, 2020 Cash Receivables Inventory Total current assets Net fixed assets $ 20.240 $ 32.560 $ 69.520 $122,320 $330,400 Total assets $452,720 Accounts payable $ 54,400 Notes payable $ 13,600 Total current liabilities $ 68,000 Long-term debt $126,000 Total debt $194,000 Common stock Retained Earnings Total Common equity $112,000 $146,720 $258,720 Total liabilities & equity $452,720