Based on the following information for the Skandia Mining Company, what is EFN if sales are predicted to grow by 10 percent?

Use the percentage of sales approach and assume the company is operating at full capacity. The payout ratio is constant.

Transcribed Image Text:

Income Statement Sales Costs Taxable income Taxes (34%) Net income Dividends Addition to retained earnings SKANDIA MINING COMPANY Financial Statements Balance Sheet $4,250.0 3,875.0 Assets Current assets Liabilities and Owners' Equity $ 900.0 Current liabilities $ 500.0 $ 375.0 127.5 Net fixed assets Total 2,200.0 $3,100.0 Long-term debt $1,800.0 Owners' equity 800.0 $ 247.5 $ 82.6 164.9 Total liabilities and owner's equity $3,100.0