The most recent financial statements for Fleury Inc., follow. Sales for 2015 are projected to grow by 25 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.

What is the EFN?

FLEURY, INC. 2013 Income Statement Sales $753,000 588.000 Other expenses 24.000 $141,000 Earnings before interest and taxes Interest paid $131.000 Taxable income Taxes (40%) 52,400 78600 Net income $31,440 Dividends 47,160 Addition to retained earnings FLEURY, INC. Balance Sheetas, of December 31, 2014 Liabilities and Owners Equity Current assets Current liabilities 55,400 21.240 Accounts payable Accounts receivable 33,500 Notes payable 4.600 70,000 Inventory 70,520 $101.000 $125,320 Long-term debt Fixed assets Owners equity Net plant and equipment $210,000 Common stock and paid-in surplus $100,000 Retained earnings 64,320 $164,320 Total assets $335,320 Total liabilities and owners equity $335,320 In 2014, the firm operated at75 percent of capacity Construct the pro forma income statement and balance sheet for the company Assume that fixed assets are sold so that the company has a 100 percentasset utilization. (Do not round intermediate calculations.) Pro Forma Income Statement Sales Other expenses EBIT Interest Taxable income Taxes (40%. Net income Pro Forma Balance Sheet Liabilities and Owners Equity Current assets Current liabilities Accounts payable Accounts receivable Notes payable Inventory Long-term debt Fixed assets Owners equity Net plant and equipment Common stock and paid-in surplus Retained earnings Total liabilities and owners equity Total assets What is the EFN? (Do not round intermediate calculations. Negative amount should be indicated by a minus sign