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The most recent financial statements for Fleury Inc., follow. Interest expense will remain

The most recent financial statements for Fleury Inc., follow. Interest expense will remain

The most recent financial statements for Fleury Inc., follow. 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. Assume the firm is operating at full capacity and the debt-equity ratio is held constant.

Calculate the EFN for 15, 20 and 45 percent growth rates.

EFN stands for External funds needed

FLEURY, INC.

2014 Income Statement

  Sales

 

 

 

$

748,000

 

  Costs

 

 

 

 

583,000

 

  Other expenses

 

 

 

 

19,000

 

 

 

 

 

 

 

 

  Earnings before interest and taxes

 

 

 

$

146,000

 

  Interest paid

 

 

 

 

10,000

 

 

 

 

 

 

 

 

  Taxable income

 

 

 

$

136,000

 

  Taxes (35%)

 

 

 

 

47,600

 

 

 

 

 

 

 

 

  Net income

 

 

 

$

88,400

 

 

 

 

 

 

 

 

  Dividends

$

17,680

 

 

 

 

  Addition to retained earnings

 

70,720

Abhinav 02-Dec-2019

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