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 $746,000 581,000 17,000 Earnings before interest and taxes Interest paid $ 148,000 13,000 Taxable income Taxes (23%) $ 135,000 31,050 Net income $ 103,950 Dividends Addition to retained earnings $ 31,185 72,765 CROSBY, INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20.540 Accounts pavable $ 54 700 Cash Accounts receivable $ 20,540 43,480 Accounts payable Notes payable $ 54,700 13,900 Inventory 90,960 Total $ 68,600 Total $ 129,000 23 Fixed assets Net plant and equipment $ 154,980 Long-term debt Owners' equity Common stock and paid-in $422,000 surplus Retained earnings $ 114,000 265,380 Total $379,380 Total assets $576,980 Total liabilities and owners' equity $576,980 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 tha the company has a 100 percent asset utilization. (Do not round intermediate calculations.) Answer is complete and correct. Pro Forma Income Statement Sales $ 969,800 Costs 755,300 Other expenses 22,100