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. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. CROSBY, INC 2017 Income Statement Sales Costs Other expenses $768,000 624,000 31,500 Earnings before interest 112,500 16,000 and taxes Interest paid Taxable income Taxes (25%) $ 96,500 24,125 Net income $ 72,375 Dividends Addition to retained $34,140 38,235 earnings CROSBY, INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities $25,740 Accounts payable 35,210 Notes payable $63,400 Cash Accounts receivable 19,100 82,500 $116,000 Inventory 71,870 Total Total $132,820 Long-term debt Owners' equity Common stock and paid-in $ 111,000 48,320 $159,320 $357,820 Fixed assets surplus Net plant and quipment $225,000 Retained earnings Total Total Tiabilities and owners" Total assets 357,820 equity