The most recent financial statements for Fleury Inc., follow. Sales for 2012 are projected to grow by 20 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. 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 Fixed assets Owners' equity Net plant and equipment $ 330,400 Common stock and paid-in surplus $ 112,000 Retained earnings 146,720 Total $ 258,720