2 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. 5 ints CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $ 770,000 626.000 32,500 eBook Earnings before interest and taxes Interest paid $ 111,500 16.800 Print Taxable income Taxes (22%) $ 94,700 20.834 References Net income $ 73,866 Dividends Addition to retained earnings $ 21,340 52,526 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,940 Accounts payable $ 64,200 Accounts receivable 35,430 Notes payable 19,700 Inventory 72,050 Total $ 83,900 Total $ 133,420 Long-term debt $ 118,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings $ 113,000 Net plant and equipment $227,000 45,520 Total $ 158,520 Total assets $360,420 Total liabilities and owners' equity $360,420 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