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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 $758,000 614,000 26,500 Earnings before interest and taxes Interest paid $ 117,500 12,000 Taxable income Taxes (25%) $ 105,500 26,375 Net income $ 79,125 Dividends Addition to retained earnings $ 40,140 38,985 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 receivable 34,110 Notes payable 16,100 Inventory 70,970 Total $ 75,500 Total $ 129,820 Long-term debt $ 106,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings $ 101,000 Net plant and equipment $ 215,000 62,320 Total $ 163,320 Total assets $344,820 Total liabilities and owners' equity $344,820 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 10% Sales Growth 15% Sales Growth 40% Sales Growth Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (25%) Net income Dividends Add to RE Calculate the EFN for 10, 15 and 40 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.) Calculate the EFN for 10, 15 and 40 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.) 10% 15% 40% EFN

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