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 $754,000 589,000 25,000 Earnings before Interest and taxes Interest pald $140,000 21,000 Taxable income Taxes (21%) $119,000 24,990 Net Income $94,010 Dividends Addition to retained earnings $28,203 65,807 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,340 Accounts payable $ 55,500 Accounts receivable 44,280 Notes payable 14,700 Inventory 98,960 Total $ 70,200 Total $ 164,580 Long-term debt $ 137,000 Fixed assets Net plant and equipment $430,000 Owners' equity Common stock and pald-in $118.000 surplus Accumulated retained 269,380 earnings Total $ 387,380 Total assets $594,580 20 Total liabilities and owners' equity $594,580 Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Cash Current liabilities Accounts payable Notes payable Accounts receivable Inventory Total Total Fixed assets Net plant and equipment 0 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total 0 Total liabilities and owners' equity Total assets