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4 value 666 points 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

4. value: 6.66 points 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. FLEURY, INC. 2014 Income Statement $757,000 592,000 13,000 Sales Costs Other expenses Eanings before interest and taxes Interest paid $152,000 15,000 Taxable income $137,000 27,400 Taxes (20%) Net income $109,600 Dividends Addition to retained earnings 621,920 87,680 FLEURY INC Balance Sheet as of December 31, 2014 Liabilities and Owners' Equity Assets Current assets Current liabilities Accounts payable Notes payable S 21,640 33,960 S 55,800 15,000 Cash Accounts receivable S 70,800 Inventory 70,920 Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings $ 126,520 Total $140,000 Fixed assets Net plant and equipment $ 490,000 $126,000 279,720 Total $405,720 Total assets Total liabilities and owners' equity $616,520 $616,520 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? ( ate calculation not round int s.) EFN

 

May 18 2020 View more View Less

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