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The most recent financial statements for Crosby Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant; the

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The most recent financial statements for Crosby Inc., follow. Sales for 2018 are projected to grow by 30 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 $758,000 593,000 29,000 Earnings before interest and taxes Interest paid $136.000 25,000 Taxable income Taxes (25%) $111,000 27750 Net income $83,250 Dividends Addition to retained earnings $24,975 58,275 CROSBY, INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21740 Accounts payable $ 55,900 Accounts receivable 44,680 Notes payable 15.100 Inventory 102.960 Total $ 71,000 Total $ 141.000 Fixed assets Net plant and equipment $ 169,380 Long-term debt Owners' equity Common stock and paid in $434,000 surplus Accumulated retained earnings $ 120,000 271,380 In 2017, the firm operated at 75 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that the company cannot sell fixed assets. This implies that asset utilization may remain less than 100 percent next year as well. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest Taxable income Taxes (25%) $ 0 $ 0 $ Net income $ 0 Assets Current assets Cash Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total $ 0 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total $ 0 Total liabilities and owners' equity $ 0 $ Fixed assets Net plant and equipment 0 Total assets $ 0 What is the EFN? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32. A negative answer should be indicated by a minus sign.) EFN

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