Bien Company has the following financial statements for 2018:

Income statement balance sheet

Sales $ 36,000Assets$28,300Debt $7000

Costs27,500 Equity21,300

Net income$ 8,500 Total$28,300Total$ 28,300

The company has no dividend currently.It expects 10% sales, costs and income increase in 2019.It also predicts assets increase by 10% as well.

a)Produce a pro forma 2019 income statement and balance sheet

b)calculate the new debt level in order to balance the 2019 balance sheet;

c)In 2019, Bien decides to pay out 40% of income as dividend.Cost, income and assets will increase by 10% as sales, and debt stays constant.

What's the EFN?