22 The most recent financial statements for Crosby the follow Sales for 2018 are projected 25 percent interestepense wiem co the the dewiremco Costs other current CROSYNC 2007 con $S1000 56.000 22.000 Earrings before interest $143.000 Herstad 18000 Touable income S000 20750 $ 96250 Den trend 56:40 22 CROSO Behbecenter 2007 Lind Damen C $ 2000 Accounts paya Accounts recebe $ 55200 500 Long terme de 3134000 Owen Condado 267.580 met andere company 22 In 2012 et percent of capacity on the forma income weet company that we word so that the company 100 percent Dentround intermediate 22 TO 22 4 points The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 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. CROSBY, INC 2017 Income Statement Sales $ 751,000 Costs 586,000 Other expenses 22,000 Earnings before interest $ 143,000 and taxes Interest paid 18,000 eBook Print References Taxable income Taxes (23%) $ 125,000 28,750 Net income $ 96,250 $29,838 Dividends Addition to retained earnings 66,412 22 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,040 Accounts payable $ 55,200 Accounts receivable 43,980 Notes payable 14,400 4 points eBook 95,960 Total $ 69,600 Inventory Print Total $ 134,000 $ 160,980 Long-term debt References Fixed assets Net plant and equipment $427,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 116,500 267,880 Total $384,380 Total assets $587,980 Total liabilities and owners' equity $587,980 In 2017, the firm operated at 80 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.) 22 In 2017, the firm operated at 80 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round Intermediate calculations.) 4 points eBook Print References Other expenses Pro Forma Income Statement Sales $ 938,750 Costs 732,500 27,500 EBIT $ 178,750 Interest 18,000 Taxable income $ 160,750 Taxes 36,973 Net income $ 123,778 22 Assets Current assets Cash 4 points $ Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities 515,861 Accounts payable $ 54 975 Notes payable 119.950 Total $ Long-term debt $ Owners' equity Common stock and paid-in surplus $ Retained earnings Total $ Total liabilities and owners' equity 69,000 18,000 87,000 134,000 eBook Print References Fixed assets Net plant and equipment 116,500 353,286 690,786 Total assets What is the EFN? (Do not round Intermediate calculations. A negative answer should be indicated by a minus sign.) EFN