12 The most recent financial statements for Crosby, 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. 0.5 points Skipped CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $ 771,000 627,000 33,000 eBook $ 111,000 Earnings before interest and taxes Interest paid 17,200 References Taxable income Taxes (23%) $ 93,800 21,574 Net income $ 72,226 $20,640 Dividends Addition to retained earnings 51,586 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 26,040 Accounts payable $ 64,600 Accounts receivable 35,540 Notes payable 20,000 Inventory 72,140 Total $ 84,600 Total $ 133,720 Long-term debt $ 119,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings $ 114,000 Net plant and equipment $228,000 44,120 Total $ 158,120 Total assets $ 361,720 Total liabilities and owners' equity $361,720 Complete the pro forma income statements below. (Input all answers as positive values. Do not round intermediate calculations.) Pro Forma Income Statement 20% Sales Growth 25% Sales Growth 30% Sales Growth Sales Costs Other expenses EBIT Interest paid Taxable income Taxes Net income Dividends Add to RE Calculate the EFN for 20, 25 and 30 percent growth rates. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) 20% 25% 30% EFN