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If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25

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If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales?

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image text in transcribed Problem 4-24 Calculating EFN [LO2] The most recent financial statements for Fleury Inc., follow. Sales for 2012 are projected to grow by 25 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. FLEURY, INC. 2011 Income Statement Sales $ Costs Other expenses Earnings before interest and taxes $ Interest paid Taxable income Taxes (20%) Net income $ 761,0 00 596,0 00 17,00 0 148,0 00 18,00 0 130,0 00 26,00 0 104,0 00 Dividends $ Addition to retained earnings 20,8 00 83,2 00 FLEURY, INC. Balance Sheet as of December 31, 2011 Assets Current assets 22,04 Cash $ 0 34,36 Accounts receivable 0 71,32 0 Inventory Total $ 127,7 20 Fixed assets Net plant and equipment $ 450,0 00 Liabilities and Owners' Equity Current liabilities Accounts payable $ Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total 56,20 0 15,40 0 $ 71,60 0 $ 144,0 00 $ 130,0 00 232,1 20 $ 362,1 20 Total assets $ 577,7 20 Total liabilities and owners' equity $ 577,7 20 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations.)

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