Problem 3-25 EFN and Sustainable Growth me hents for Scott, Inc., appear below. Interest expense will m/TGnewUl/Search/.../Hom... nd the dividend payout rate also will remain constant. LUS, Uuler unus, Lurren 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. SCOTT, INC. 2019 Income Statement Sales $757,000 Costs 613,000 Other expenses 26.000 Earnings before interest $ 118,000 and taxes Interest expense 11,600 Taxable income Taxes (24%) $106,400 25,536 Net income $ 80,864 Dividends Addition to retained earnings $40,740 40,124 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,640 Accounts payable $ 59,000 Accounts receivable 34,000 Notes payable 15,800 Inventory 70,880 Total $ 74,800 Total $ 129,520 Long-term debt $105,000 Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment $100,000 $ 214,000 63,720 Total $ 163,720 Total assets $343,520 Total liabilities and owners equity $343,520 Total $ 163,720 Total assets $343,520 Total liabilities and owners equity $343,520 Complete the pro forma income statements below. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Sales Costs Other expenses EBIT Pro Forma Income Statement 15% Sales Growth 20% Sales Growth 45% Sales Growth $ 870,550 $ 908,400 $ 1,097,650 704,950 735,600 888,850 29,900 31,200 37,700 $ 135,700 $ 141,600 $ 171,100 11,600 11,600 11,600 $ 124,100 $ 130,000 $ 159,500 29,784 31,200 38,280 $ 94,316 $ 98,800 $ 121,220 $ 47,517 $ 49,776 $ 61,072 46,799 49,024 60,148 Interest expense Taxable income Taxes (24%) Net Income Dividends Add to RE Calculate the EFN for 15, 20 and 45 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 dollar amount.) 15% 20% 45% EFN