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 ayout 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 $759.000 594,000 30,000 Earnings before interest and taxes Interest paid $135,000 26,000 Taxable income Taxes (21%) $109,000 22,890 Net income $86,110 Dividends Addition to retained earnings $26.694 59,416 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,840 Accounts payable $ 56,000 Accounts receivable 44,780 Notes payable 15,200 Inventory 103.960 Total $ 71,200 Total $ 170,580 Long-term debt $ 142.000 Fixed assets Net plant and equipment Common stock and paid-in $ 120,500 $435.000 Owners equity Common stock and paid in surplus Accumulated retained earnings 271,880 Total $392,380 Total assets $605.580 Total liabilities and owners' equity $605,580 In 2017, the firm operated at 80 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 (219) Net income S 0 1 Assets Current assets Cash Accounts receivable Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes pavable Total 0 Long-term debt Owners' equity Common stock and paid in surplus Retained earnings Inventory Total $ Fixed assets Net plant and equipment Total assets $ 0 Total abilities and owners' equity S 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