24. ning of period and end of period total assets. What do you observe? Calculating EFN [LO2] The most recent financial statements for Crosby, Inc., fol- low. Sales for 2018 are projected to grow by 20 percent. 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 sponta- neously with sales. If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? CROSBY, INC. 2017 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net Income Dividends $39,250 Addition to retained earnings 81,620 $980,760 792,960 20.060 $167,740 14.740 $153,000 32,130 $120.870 Assets Current assets Cash Accounts receivable Inventory CROSBY, INC. Balance Sheet as of December 31, 2017 Liabilities and Owners' Equity Current liabilities $ 27,920 Accounts payable 42,630 Notes payable 95,910 Total $166,460 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total $622,440 Total liabilities and owners' equity $ 71,720 17,620 $ 89,340 $170,000 Total Fixed assets Net plant and equipment $140,000 223,100 $363,100 $622,440 Total assets