he most recent financial statements for Retro Machine, Inc., follow. Sales for 2021 are projected to grow by 25 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.

RETRO MACHINE, INC. 2020 Income Statement
Sales				$	767,000
Costs					623,000
Other expenses					31,000
Earnings before interest and taxes				$	113,000
Interest paid					15,600
Taxable income				$	97,400
Taxes (24%)					23,376
Net income				$	74,024
Dividends	$	23,440
Addition to retained earnings		50,584

RETRO MACHINE, INC. Balance Sheet as of December 31, 2020
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$	25,640		Accounts payable	$	63,000
Accounts receivable		35,100		Notes payable		18,800
Inventory		71,780		Total	$	81,800
Total	$	132,520		Long-term debt	$	115,000
				Owners equity
Fixed assets				Common stock and paid-in surplus	$	114,000
Net plant and equipment	$	224,000		Retained earnings		45,720
				Total	$	159,720
Total assets	$	356,520		Total liabilities and owners equity	$	356,520

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.)

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