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The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 22 percent. Interest expense will remain constant;

The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 22 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 $ 573092
Costs 507669
Other expenses 10908
Earnings before interest and taxes $ ?
Interest paid 13967
Taxable income $ ?
Taxes (30%) ?
Net income ?
Dividends $ 8316

FLEURY, INC.
Balance Sheet
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 22608 Accounts payable $ 51034
Accounts receivable 39842 Notes payable 17061
Inventory 70054
Long-term debt $ 118838
Fixed assets
Net plant and equipment $ 444760 Owners equity
Common stock and paid-in surplus $ 124367
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 22 percent growth rate in sales?

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