16 The most recent financial statements for Crosby Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets and accounts payable increase spontaneously with sales. 75 oints CROSBY, INC. 2017 Income Statement eBook Sales Costs Other expenses $761,000 596,000 32,000 Print References Earnings before interest and taxes Interest paid $133,000 28,000 Taxable income Taxes (23%) $105,000 24,150 Net Income $80,850 Dividends Addition to retained earnings $25,064 55,786 CROSBY, INC. CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 22,040 Accounts payable $ 56,200 Accounts receivable 44,980 Notes payable 15,400 Inventory 105,960 Total $ 71,600 Total $ 172,980 Long-term debt $ 144,000 Fixed assets Net plant and equipment Owners' equity $ 437,000 Common stock and paid-in $ 121,500 surplus Accumulated retained 272,880 : earnings Total $394,380 Total assets 000 $609,980 lo Total liabilities and owners' equity $609,980 In 2017, the firm operated at 80 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that the company cannot sell fixed assets. This implies that asset utilization may remain less than 100 percent next year as well. (Do not round Intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest Taxable income Taxes (23%) Net income Assets Current assets Cash Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity Fixed assets Net plant and equipment Total assets Fixed assets Net plant and equipment Owners equity Common stock and paid-in surplus Retained earnings Total Total assets Total liabilities and owners' equity What is the EFN? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g. 32. A negative answer should be Indicated by a minus sign.) EFN