The most recent financial statements for Crosby Inc., follow. Sales for 2018 are proiected 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 Costs Other expenses $759,000 594,000 30,000 Earnings before interest and taxes Interest paid $135,000 26,000 Taxable income Taxes (219) $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 Net plant and equipment $435.000 Common stock and paid.in $120.500 surplus Accumulated retained 271,880 earnings 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 $ 910,800 Costs 712,800 Other expenses 36.000 EBIT $ 162,000 Interest 26,000 Taxable income $ 136.000 Taxes (21%) 28,560 Net income $ 107.440 3 Answer is complete but not entirely correct. Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current liabilities Current assets Cash S Accounts receivable Inventory 67.200 18.240 85,440 142,000 Total 26,208 Accounts payable 53,736 Notes payable 124,752 Total 204696 Long-term debt Owners' equity Common stock and paid-in surplus 489,2583 Retained earnings Total 693,954 Total liabilities and owners' equity wners' equity S Fixed assets Net plant and equipment s 120,500 346014 466,514 693,954 Total assets $ S S 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.) EFND