13 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. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. 6.76 points CROSBY, INC 2017 Income Statement Sales Costs Other expenses cook $760,000 616.000 27,500 References Earnings before interest and taxes Interest paid $ 116.500 12.800 Taxable income Taxes (22%) $ 103,700 22,814 Net income $ 80,886 Dividends Addition to retained earnings $38,940 41.946 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,940 Accounts payable $ 60,200 Accounts receivable 34,330 Notes payable 16,700 Inventory 71,150 Total $ 76,900 Total $130,420 Long-term debt $108,000 Owners' equity Common stock and paid-in $103,000 surplus $ 217,000 Retained earnings 59,520 Fixed assets Net plant and equipment Total $162,520 Total assets $347,420 Total liabilities and owners! equity $347,420 Complete the pro forma income statements below. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Pro Forma Income Statement 10% Sales Growth 15% Sales Growth 40% Sales Growth Sales Costs Other expenses EBIT Interest paid Taxable income Texas (22) Net income Dividends Add to RE Calculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and round your answers to the nearest whole dollar amount.) 10% 15% 40% EFN