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The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 20 percent. Interest expense will remain constant;

The most recent financial statements for Fleury Inc., follow. Sales for next year 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.
Income Statement
Sales $ 587,622
Costs 509,434
Other expenses 14,167
Earnings before interest and taxes $ ?
Interest paid 14,220
Taxable income $ ?
Taxes (30%) ?
Net income ?
Dividends $ 8,965

FLEURY, INC.
Balance Sheet
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 22,718 Accounts payable $ 59,292
Accounts receivable 39,474 Notes payable 19,530
Inventory 72,336
Long-term debt $ 103,705
Fixed assets
Net plant and equipment $ 423,737 Owners equity
Common stock and paid-in surplus $ 129,444
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 20 percent growth rate in sales?

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