Problem 4-26 Calculating EFN [LO2] The most recent financial statements for Fleury Inc., follow. Sales for 2012 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 2011 Income Statement Sales Costs Other expenses $763,000 598,000 19,000 Earnings before interest and taxes Interest paid $146,000 10,000 Taxable income Taxes (35%) $136,000 47,600 Net income 88,400 Dividends Addition to retained earnings $21,760 66,640 FLEURY, INC Balance Sheet as of December 31, 2011 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable S 22,240 Accounts payable $ 56,400 34,560 Notes payable 15,600 $ 72,000 $146,000 $132,000 71,520 Total Total $128,320 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment $420,000 198,320 $330,320 $548,320 Total Total assets $548,320 Total liabilities and owners' equity What is the EFN if the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations.) EFN