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The most recent financial statements for Fleury Inc., follow. Sales for 2012 are projected to grow by 30 percent. Interest expense will remain constant, the
The most recent financial statements for Fleury Inc., follow. Sales for 2012 are projected to grow by 30 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 $748,000 Sales 583,000 Costs 19,000 Other expenses 146,000 Earnings before interest and taxes Interest paid 10,000 136,000 Taxable income 47,600 Taxes (35%) 88,400 Net income 17,680 Dividends 70,720 Addition to retained earnings
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