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 $758,000 Costs 593,000

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 27,750 Net income $83,25 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 $ 21,740 Accounts payable $ 55,900 Accounts receivable 44,680 Notes payable 15,100 Inventory 102,960 Total $ 71,000 Total $ 169,380 Long-term debt $ 141,000 Fixed assets Net plant and equipment $434,000 $ 120,000 Owners' equity Common stock and paid-in surplus Accumulated retained earnings 271,380 Total $ 391,380 Total assets $603,380 Total liabilities and owners' equity $603,380 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 $ 0 Interest $ 0 Taxable income Taxes (25%) Net income $ 0 Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts payable Notes payable Accounts receivable Total $ 0 Inventory Total $ 0 Long-term debt Owners' equity Common stock and paid-in surplus Fixed assets Net plant and equipment Retained earnings Total $ 0 Total assets $ 0 Total liabilities and owners' equity $ 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