7 The most recent financial statements for Crosby, Inc., follow. 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, and accounts payable increase spontaneously with sales. 25 eoints CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $763,000 598,000 34,000 eBook $ 131,000 Earnings before interest and taxes Interest paid 30,000 Print Taxable income Taxes (25%) $ 101,000 25.250 References Net income $ 75,750 Dividends Addition to retained earnings $23,483 52,267 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 22,240 Accounts payable $ 56,400 Accounts receivable 45.180 Notes payable 15,600 Inventory 107,960 Total $ 72.000 Total $ 175,380 Long-term debt $ 146,000 Fixed assets Net plant and equipment $439,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 122,500 273,880 Total $396,380 Total assets $ 614,380 Total liabilities and owners' equity $ 614,380 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.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest Taxable income Taxes 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 What is the EFN? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) EFN