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PLEASE HELP The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will
PLEASE HELP
The most recent financial statements for Crosby, Incorporated, 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. $ 756,000 612,000 25,500 CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net income $ 118,500 11,200 $ 107,300 24,679 $ 82,621 Dividends Addition to retained earnings $ 41,340 41,281 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,540 Accounts payable Accounts receivable 33,890 Notes payable $ 58,600 15,500 $ 74,100 $ 104,000 Inventory 70,790 Total Total $ 129,220 Long-term debt Owners' equity Fixed assets Common stock and paid-in surplus Net plant and equipment $ 213,000 Retained earnings $ 99,000 65,120 Total $164,120 Total assets $ 342,220 Total liabilities and owners' equity $ 342,220 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Pro Forma Income Statement 10% Sales Growth 15% Sales Growth 40% Sales Growth Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (23%) Net income Dividends Add to RE Calculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 10% 15% 40% EFN Step by Step Solution
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