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 $ 750,000 Costs 585,000 Other expenses 21,000 Earnings before interest and taxes $ 144,000 Interest paid 17,000 Taxable income $ 127,000 Taxes (22%) 27,940 Net income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342

CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 20,940 Accounts payable $ 55,100 Accounts receivable 43,880 Notes payable 14,300 Inventory 94,960 Total $ 69,400 Total $ 159,780 Long-term debt $ 133,000 Fixed assets Owners equity Net plant and equipment $ 426,000 Common stock and paid-in surplus $ 116,000 Retained earnings 267,380 Total $ 383,380 Total assets $ 585,780 Total liabilities and owners equity $ 585,780

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. What is the EFN?