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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
| 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 | $ | 751,000 | ||||
| Costs | 586,000 | |||||
| Other expenses | 22,000 | |||||
| Earnings before interest and taxes | $ | 143,000 | ||||
| Interest paid | 18,000 | |||||
| Taxable income | $ | 125,000 | ||||
| Taxes (40%) | 50,000 | |||||
| Net income | 75,000 | |||||
| Dividends | $ | 30,000 | ||||
| Addition to retained earnings | 45,000 | |||||
| FLEURY, INC. Balance Sheet as of December 31, 2011 | |||||||
| Assets | Liabilities and Owners | ||||||
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