nment FINC301-6 A Saved The most recent financial statements for Crosby, Inc., follow. 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. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. CROSBY, INC. 2017 Income Statement Sales $762,000 Costs 618,000 Other expenses 28,500 Earnings before interest $ 115,500 and taxes Interest paid 13,600 Taxable income $ 101,900 Taxes (24%) 24,456 Net income $ 77,444 Dividends Addition to retained earnings $ 37,740 39,704 CROSBY, INC. Balance Sheet as of December 31, 2017