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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

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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 Earnings before interest and taxes Interest paid $ 147,000 14,000 Taxable income Taxes (24%) $ 133,000 31.920 Net income $ 101,080 $ 31,335 Dividends Addition to retained earnings 42 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 Costs Other expenses EBIT Interest 14,000 Taxable income Taxes Net income Assets Current assets Cash Accounts receivable Inventory Total Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total abilities and owners' equity Fbced assets Net plant and equipment Total assets What is the EFN? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Do EFN

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