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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
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 | $ | 772,000 | ||||
Costs | 628,000 | |||||
Other expenses | 33,500 | |||||
Earnings before interest and taxes | $ | 110,500 | ||||
Interest paid | 17,600 | |||||
Taxable income | $ | 92,900 | ||||
Taxes (24%) | 22,296 | |||||
Net income | $ | 70,604 | ||||
Dividends | $ | 19,940 | ||||
Addition to retained earnings | 50,664 | |||||
CROSBY, INC. Balance Sheet as of December 31, 2017 | |||||||
Assets | Liabilities and Owners Equity | ||||||
Current assets | Current liabilities | ||||||
Cash | $ | 26,140 | Accounts payable | $ | 65,000 | ||
Accounts receivable | 35,650 | Notes payable | 20,300 | ||||
Inventory | 72,230 | Total | $ | 85,300 | |||
Total | $ | 134,020 | Long-term debt | $ | 120,000 | ||
Owners equity | |||||||
Fixed assets | Common stock and paid-in surplus | $ | 115,000 | ||||
Net plant and equipment | $ | 229,000 | Retained earnings | 42,720 | |||
Total | $ | 157,720 | |||||
Total assets | $ | 363,020 | Total liabilities and owners equity | $ | 363,020 | ||
Complete the pro forma income statements below. (Input all answers as positive values. Do not round intermediate calculations.) |
Calculate the EFN for 20, 25 and 30 percent growth rates. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) |
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