Costs 81 Other expenses 40 $ EBIT $ $ 14 148 10 Interest expense Taxable income $ 748,800 37,786 134,922 16,000 118,922 29,731 89,191 28,024 61,167 $ 780,000 39,360 140,544 16,000 124,544 31,136 93,408 29,349 64,059 $ 130 3 9 $ $ Taxes Net income Dividends Add to RE $ 3 be Calculate the EFN for 20, 25 and 30 percent growth rates. (Do not round inte calculations. A negative answer should be indicated by a minus sign.) Answer is complete but not entirely correct. 25% 30% 20% 2,283 $ EFN $ 9,546 21,375 The most recent financial statements for Scott, Inc., appear below. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest expense $768,000 624,000 31,500 $ 112,500 16,000 Taxable income Taxes (25%) $ 96,500 24,125 Net income $ 72,375 Dividends Addition to retained earnings $22,740 49,635 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,740 Accounts payable $ 63,400 Accounts receivable 25 210 Notec navahle 1910 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,740 Accounts payable $ 63,400 Accounts receivable 35,210 Notes payable 19,100 Inventory 71,870 Total $ 82,500 Total $ 132,820 Long-term debt $ 116,000 Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment $ 111,000 $225,000 48,320 Total $159,320 Total assets $ 357,820 Total liabilities and owners' equity $357,820 na Answer is complete and correct. $ $ Sales Costs Other expenses EBIT Interest expense Taxable income Taxes Net income Pro Forma Income Statement 20% Sales 25% Sales Growth Growth 921,600 960,000 748,800 780,000 37,786 39,360 134,922 $ 140,544 16,000 16,000 118,922 $ 124,544 29,731 31,136 89,191 93,408 28,024 29,349 61,167 64,059 30% Sales Growth 998,400 811,200 40,934 146,166 16,000 130,166 32,542 97,624 30,673 66,951 $ $ 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.) Answer is complete but not entirely correct. 20% 25% 9,546 30% 21,375 EFN 2,283