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The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 24 percent. Interest expense will remain constant;
The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 24 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. Income Statement Sales $ 572,021 Costs 500,122 Other expenses 14,862 Earnings before interest and taxes Interest paid 11,567 Taxable income Taxes (30%) Net income Dividends $ 6,974 $ ? $ ? ? ? FLEURY, INC. Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,332 Accounts payable $ 52,919 Accounts receivable 34,681 Notes payable 18,086 Inventory 72.921 Long-term debt $ 104,100 Fixed assets Net plant and equipment $ 428,639 Owners' equity Common stock and paid-in surplus $ 146,391 Retained earnings ? If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 24 percent growth rate in sales
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