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.

CROSBY, INC.

2017 Income Statement

Sales $758,000

Costs 614,000

Other expenses 26,500

Earnings before interest and taxes$117,500

Interest paid 12,000

Taxable income $105,500

Taxes (25%) 26,375

Net income $79,125

Dividends $29,740

Addition to retained earnings 49,385

CROSBY, INC.

Balance Sheet as of December 31, 2017

Assets Liabilities and Owners' Equity

Current assets Current liabilities

Cash$24,740 Accounts payable$59,400

Accounts receivable34,110 Notes payable16,100

Inventory70,970 Total$75,500

Total$129,820 Long-term debt$106,000

Fixed assets Owners' equity

Net plant and equipment$215,000 Retained earnings62,320

Total$163,320

Total assets$344,820 Total liabilities and owners' equity$344,820

Complete the pro forma income statements below.(Input all answersas positive values. Do not round intermediate calculations.)

Pro forma Income Statement

20% sales growth 25% sales growth 30% sales growth

Sales

Cost

Other expenses

EBIT

Interest Paid

Taxable Income

Taxes

Net Income

Dividends

Add To RE

Calculate the EFN for 20, 25 and30 percent growth rates.(Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

20% 25% 30%

EFN :