Question 5. (20 marks) 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. 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? Fleury Inc. 2011 Income Statement 743,00 Sales 0 578,00 Costs 0 Other expenses 15,200 Earning before interest and 149,80 taxes 0 Interest paid 11,200 138,60 Taxable income 0 Taxes 48,510 Net Income 90,090 Dividends 27,027 Additions to retained earnings 63,063 Fleury Inc. Balance Sheet as of December 31, 2011 Amount Liabilities Current liabilities Amount Assets Current Assets Cash 20,240 Accounts payable 54,400 Accounts receivables 32,560 Notes payable 13,600 Inventory 69,520 Total 68,000 Total 122,320 Fixed Assets Long term debt 126,000 Net plant and equipment 330,400 Owner's equity Common stock and paid-in surplus 112,000 Retained earnings 146,720 Total 258,720 Total assets 452,720 Total liabilities and shareholder's equity 452,720