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The most recent financial statements for Fleury Inc., follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain

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The most recent financial statements for Fleury Inc., follow. 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 $743,000 578,000 15,200 Earnings before interest and taxes Interest paid $ 149,800 11,200 Taxable income Taxes (35%) $ 138,600 48,510 Net income $ 90,090 Dividends Addition to retained earnings $ 27,027 63,063 FLEURY, INC. Balance Sheet as of December 31, 2011 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20,240 Accounts payable $ 54,400 Accounts receivable 32,560 Notes payable 13,600 Total $ 68,000 Inventory 69,520 FLEURY, INC. Balance Sheet as of December 31, 2011 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20,240 Accounts payable $ 54,400 Accounts receivable 32,560 Notes payable 13,600 Inventory 69,520 Total $ 68,000 Total $126,000 $ 122,320 Long-term debt Owners' equity Common stock and paid-in surplus $330,400 Retained earnings $ 112,000 Fixed assets Net plant and equipment 146,720 Total $258,720 Total assets $452,720 Total liabilities and owners' equity $452,720 Complete the pro forma income statements below. (Input all amounts as positive values.) FLEURY INC. Pro Forma Income Statement 15 % Sales Growth 20% Sales Growth $ 25 % Sales Growth $ Sales Costs May Complete the pro forma income statements below. (Input all amounts as positive values.) FLEURY INC. Pro Forma Income Statement 15 % Sales Growth 20% Sales Growth $ $ 25% Sales Growth $ Sales Costs Other expenses $ $ $ EBIT Interest $ $ $ Taxable income Taxes (35%) Net income $ $ $ LE $ $ $ Dividends Add to RE Calculate the EFN for 15, 20 and 25 percent growth rates. (Negative amounts should be indicated by a minus sign.) 15% $ 20% $ 25% $ EFN

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