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The most recent financial statements for Crosby, Inc., follow. Interest expense wiIll remaln constant, the tax rate and the dividend payout rate will also remain
The most recent financial statements for Crosby, Inc., follow. Interest expense wiIll remaln 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 Costs Other expenses $980,760 792,960 20,060 Earnings before Interest and taxes Interest pald $167,740 14,740 $153,000 Taxable Income Taxes (21%) 32130 Net Income $120,870 $39,250 Dividends Addition to retalned 81,620 earnings CROSBY, INC Balance Sheet as of December 31, 2017 Assets Liabillties and Owners' Equity Current assets Cash Accounts recelvable Current llabllitles $ 27,920 Accounts payable $ 71.720 17,620 $89,340 $170,000 42,630 Notes payable Inventory 95.910 Total Total $ 166,460 Long-term debt Owners' equity Common stock and paid-in s1 $140,000 223,100 $363,100 $622,440 Fixed assets surplus Net plant and equipment $455,980 Retalned earnings Total Total liabilities and owners Total assets $622,440 equity Complete the pro forma Income statements below. (Do not round Intermediate calculations. Input all amounts as posltive values.) Pro Forma Income Statement 15% Sales Growth | 20% Sales Growth | 25% Sales Growth Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (21%) Net income Dividends Add to RE Calculate the EFN for 15, 20, and 25 percent growth rates. (Do not round Intermedlate calculations. A negetlve answer should be Indicated by a minus sign.) 15% 20% 25% EFN
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