Reference no: EM131324728

Calculating EFN [LO2] The most recent financial statements for Fleury Inc., follow. Sales for 2015 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. 2014 Income Statement Sales $ 749,000 Costs 584,000 Other expenses 20,000 Earnings before interest and taxes $ 145,000 Interest paid 16,000 Taxable income $ 129,000 Taxes (30%) 38,700 Net income $ 90,300 Dividends $ 18,060 Addition to retained earnings 72,240 FLEURY, INC. Balance Sheet as of December 31, 2014 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 20,840 Accounts payable $ 55,000 Accounts receivable 33,160 Notes payable 14,200 Inventory 70,120 Total $ 69,200 Total $ 124,120 Long-term debt $ 132,000 Fixed assets Owners’ equity Net plant and equipment $ 420,000 Common stock and paid-in surplus $ 118,000 Retained earnings 224,920 Total $ 342,920 Total assets $ 544,120 Total liabilities and owners’ equity $ 544,120 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round intermediate calculations.) EFN $