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CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,840 Accounts payable $ 63,800
CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,840 Accounts payable $ 63,800 Accounts receivable 35,320 Notes payable 19,400 Inventory 71,960 Total $ 83,200 Total $ 133,120 Long-term debt $ 117,000 Fixed assets Net plant and equipment Owners' equity Common stock and paid.in $116,000 surplus Retained earnings 42,920 $226,000 Total $158,920 Total assets 220 Total liabilities and owners' equity $ 359,120 What is the EFN if the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) EFN 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, fixed assets, and accounts payable increase spontaneously with sales. CROSBY, INC. 2017 Income Statement Sales $769,000 Costs 625.000 Other expenses 32,000 Earnings before interest and taxes Interest paid $ 112,000 16,400 Taxable income Taxes (21%) $ 95,600 20,076 Net income $ 75,524 Dividends Addition to retained earnings $22,040 53,484
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