The most recent financial statements for Fleury Inc , follow Sales for next year are projected to grow by 16 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 $ 568162 Costs 505227 Other expenses 14906 Earnings before interest and taxes $ Interest paid 13717 Taxable income $ Taxes (30 ) Net income Dividends $ 8281 FLEURY, INC Balance Sheet Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 22959 Accounts payable $ 59102 Accounts receivable 39686 Notes payable 18902 Inventory 74936 Long term debt $ 111605 Fixed assets Net plant and equipment $ 438370 Owners equity Common stock and paid in surplus $ 124050 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 16 percent growth rate in sales

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Posted on Sep 21, 2024

The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 16 percent. Interest expense will remain constant;

The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 16 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	$	568162
Costs		505227
Other expenses		14906
Earnings before interest and taxes	$	?
Interest paid		13717
Taxable income	$	?
Taxes (30%)		?
Net income		?

Dividends	$	8281

FLEURY, INC.
Balance Sheet
Assets			Liabilities and Owners Equity
Current assets			Current liabilities
Cash	$	22959	Accounts payable	$	59102
Accounts receivable		39686	Notes payable		18902
Inventory		74936
			Long-term debt	$	111605
Fixed assets
Net plant and equipment	$	438370	Owners equity
			Common stock and paid-in surplus	$	124050
			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 16 percent growth rate in sales?