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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

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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 es $755,000 611,000 25,000 Earnings before interest and taxes Interest paid $ 119,000 10,800 Taxable income Taxes (22%) $ 108,200 23,804 Net income $ 84,396 Dividends Addition to retained $ 41,940 3 Net income $ 84,396 Dividends Addition to retained earnings $ 41,940 42,456 Book erences CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,440 Accounts payable $ 58,200 Accounts receivable 33,780 Notes payable 15,200 Inventory 70,700 Total $ 73.400 Total $ 128,920 Long-term debt $ 103,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings $ 98,000 Net plant and equipment $ 212,000 66,520 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,440 Accounts payable $ 58,200 Accounts receivable 33,780 Notes payable 15,200 ok Inventory 70,700 Total $ 73,400 nces Total $ 128,920 Long-term debt $ 103,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings $ 98,000 Net plant and equipment $ 212,000 66,520 Total $ 164,520 Total assets $340,920 Total liabilities and owners' equity $340,920 Next Complete the pro forma income statements below. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Pro Forma Income Statement 15% Sales Growth 20% Sales Growth 45% Sales Growth ces Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (22%) Net income Dividends Add to RE Add to RE ok nces Calculate the EFN for 15, 20 and 45 percent growth rates. (A negative answer should E indicated by a minus sign. Do not round intermediate calculations and round you answers to the nearest whole dollar amount.) 15% 20% 45% EFN here to search o 0

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