The most recent financial statements for Fleury Inc., follow. Sales for next year are projected to grow by 19 percent. I
Posted: Fri Jul 01, 2022 7:48 am
The most recent financial statements for Fleury Inc., follow.Sales for next year are projected to grow by 19 percent. Interestexpense will remain constant; the tax rate and the dividend payoutrate will also remain constant. Costs, other expenses, currentassets, fixed assets and accounts payable increase spontaneouslywith sales.
FLEURY, INC. Income Statement
Sales $ 552,738
Costs 500,801
Other expenses 10,363
Earnings before interest and taxes $ ?
Interest paid 10,852
Taxable income $ ?
Taxes (30%) ?
Net income ?
Dividends $ 6,869 F
LEURY, INC. Balance Sheet Assets Liabilities and Owners’ EquityCurrent assets Current liabilities Cash $ 21,829 Accounts payable $57,564 Accounts receivable 31,641 Notes payable 15,616 Inventory74,265 Long-term debt $ 109,420 Fixed assets Net plant andequipment $ 412,140 Owners’ equity Common stock and paid-in surplus$ 149,257 Retained earnings ? If the firm is operating at fullcapacity and no new debt or equity is issued, what externalfinancing is needed to support the 19 percent growth rate insales?
FLEURY, INC. Income Statement
Sales $ 552,738
Costs 500,801
Other expenses 10,363
Earnings before interest and taxes $ ?
Interest paid 10,852
Taxable income $ ?
Taxes (30%) ?
Net income ?
Dividends $ 6,869 F
LEURY, INC. Balance Sheet Assets Liabilities and Owners’ EquityCurrent assets Current liabilities Cash $ 21,829 Accounts payable $57,564 Accounts receivable 31,641 Notes payable 15,616 Inventory74,265 Long-term debt $ 109,420 Fixed assets Net plant andequipment $ 412,140 Owners’ equity Common stock and paid-in surplus$ 149,257 Retained earnings ? If the firm is operating at fullcapacity and no new debt or equity is issued, what externalfinancing is needed to support the 19 percent growth rate insales?