Question
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 | $ | 576199 |
Costs | 501793 | |
Other expenses | 10380 | |
Earnings before interest and taxes | $ | ? |
Interest paid | 12243 | |
Taxable income | $ | ? |
Taxes (30%) | ? | |
Net income | ? | |
Dividends | $ | 8382 |
FLEURY, INC. | ||||||
Balance Sheet | ||||||
Assets | Liabilities and Owners Equity | |||||
Current assets | Current liabilities | |||||
Cash | $ | 20699 | Accounts payable | $ | 51639 | |
Accounts receivable | 39933 | Notes payable | 15237 | |||
Inventory | 70109 | |||||
Long-term debt | $ | 102444 | ||||
Fixed assets | ||||||
Net plant and equipment | $ | 416101 | Owners equity | |||
Common stock and paid-in surplus | $ | 147760 | ||||
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?
(Omit the "$" sign and commas in your response. Enter your answer rounded to 2 decimal places. For example, $1,200.456 should be entered as 1200.46.)
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