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				$	743,000
Costs					578,000
Other expenses					15,200
Earnings before interest and taxes				$	149,800
Interest paid					11,200
Taxable income				$	138,600
Taxes (35%)					48,510
Net income				$	90,090
Dividends	$	27,027
Addition to retained earnings		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

Inventory

69,520

Total

$

68,000

Total

$

122,320

Long-term debt

$

126,000

Owners equity

Fixed assets

Common stock and paid-in surplus

$

112,000

Net plant and equipment

$

330,400

Retained earnings

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
Other expenses
EBIT	$			$			$
Interest
Taxable income	$			$			$
Taxes (35%)
Net income	$			$			$
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	$	$	$