The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 percent. Interest expense will remain constant, the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. CROSBY, INC. 2017 Income Statement Sales Costs Other expenses $760,000 595,000 31,000 Earnings before interest and taxes Interest paid $ 134,000 27,000 Taxable income Taxes (229) $ 107,000 23,540 Net Income $ 83,460 Dividends Addition to retained earnings $25,038 58,422 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,940 Accounts payable $ 56,100 Accounts receivable 44,880 Notes payable 15.300 Inventory 104.960 Total $ 71,400 Total $ 143,000 Fixed assets Net plant and equipment $ 171,780 Long-term debt Owners' equity $436,000 Common stock and paid-in surplus Retained earnings $ 121,000 272,380 Total $393,380 Total assets $ 607.780 Total liabilities and owners equity $ 607,780 In 2017, the firm operated at 75 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest Taxable income Taxes Net income Assets Current assets Cash Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity Fixed assets Net plant and equipment Total assets What is the EFN? (Do not round Intermediate calculations. A negative answer should be Indicated by a minus sign.) EFN