The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 20 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 $ 747,000 Costs 582,000 Other expenses 18,000 $ 147,000 Earnings before interest and taxes Interest paid 14,000 Taxable income Taxes (24%) $ 133,000 31,920 Net income $ 101,080 Dividends Addition to retained earnings $ 31,335 69,745 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20,640 Accounts payable $ 54,800 Accounts receivable 43,580 Notes payable 14,000 Inventory 91,960 Total $ 68,800 Total $ 156,180 Long-term debt $ 130,000 Fixed assets Net plant and equipment $423,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 114,500 265,880 Total $380,380 Total assets $ 579,180 Total liabilities and owners' equity $ 579,180 In 2017, the firm operated at 80 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 896,400 Costs 698.400 Other expenses 21.600 EBIT $ 176.400 Interest 14.000 Taxable income $ 162.400 Taxes 38.976 Net income $ 123,424 Answer is complete but not entirely correct. Assets $ Current assets Cash Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities 24.768 Accounts payable 1$ 52,296 Notes payable 110,352 Total $ 187,416 Long-term debt $ Owners' equity Common stock and paid-in surplus $ 423,000 X Retained earnings Total $ 610,416 X Total liabilities and owners' equity $ 65,760 14,000 79,760 130.000 $ Fixed assets Net plant and equipment $ 114.500 351,042 465,542 675,302 Total assets What is the EFN? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Answer is complete and correct. $ -81,806 EFN