Problem 3-21 Calculating EFN

Superheview Files (Grade) 7 14.32 points ellook Hint References Seved Problem 3-21 Calculating EFN The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 20 percent. 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. CROSBY, INCORPORATED 2021 Income Statement Sales Costs. $750,000 585,000 21,000 Other expenses $ 144,000 Earnings before interest and taxes Interest expense 17,000 Taxable income $ 127,000 27,940 Taxes (22%) Net Income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Current liabilities Current assets Brou Liabilities and Owners' Equity Next > 7067 7 14.32 points eBook Hint References CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current liabilities $ 20,940 Accounts payable Accounts receivable 43,880 Notes payable Inventory 94,960 Total Total $ 159,780 Long-term debt Fixed assets Owners' equity Net plant and equipment $426,000 Common stock and paid-in surplus Retained earnings Total Total assets 585,780 Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) EFN Current assets Cash $ 55,100 14,300 $ 69,400 $ 133,000 $ 116,000 267,380 $383,380 $585,780