Question
The most recent financial statements for Fleury Inc., follow. Sales for next yearare projected to grow by 24percent. Interest expense will remain constant; the tax
The most recent financial statements for Fleury Inc., follow. Sales for next yearare projected to grow by 24percent. 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 StatementSales$576199Costs501793Other expenses10380Earnings before interest and taxes$?Interest paid12243Taxable income$?Taxes (30%)?Net income?Dividends$8382
FLEURY, INC.Balance SheetAssetsLiabilities and Owners' EquityCurrent assetsCurrent liabilitiesCash$20699Accounts payable$51639Accounts receivable39933Notes payable15237Inventory70109Long-term debt$102444Fixed assetsNet plant and equipment$416101Owners' equityCommon stock and paid-in surplus$147760Retained earnings?
If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 24percent growth rate in sales?
(Omit the "$" 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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