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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 Costs Other expenses $753,000 588,000 24,000 Earnings before Interest and taxes Interest pald $141,000 20,000 Taxable income Taxes (25%) $121,000 30,250 Net Income $90,750 Dividends Addition to retained earnings $28,133 62,617 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,240 Accounts payable $ 55,400 Accounts receivable 44.180 Notes payable 14,600 Inventory 97.960 Total $ 70.000 Total $ 163,380 Long-term debt $ 136,000 Fixed assets Net plant and quipment $429,000 Owners' equity Common stock and pald-In surplus Accumulated retained earnings $ 117,500 268,880 Total $386,380 tal assets $592,380 Total liabilities and owners' equity $592,380 2017, the firm operated at 80 percent of capacity. Construct the pro forma Income catement and balance sheet for the company. Assume that the company cannot sell xed assets. This Implies that asset utilization may remain less than 100 percent next ear as well. (Do not round Intermediate calculations and round your answers to the earest whole number, e.g., 32.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest $ S Taxable income Taxes (25%) Net income S Assets Current assets Cash Accounts receivable Inventory Total 0 Pro Foma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total 0 Long-term debt Owners' equity Common stock and paid in surplus Retained earnings Total 5 Total liabilities and owners' equity $ $ Fixed assets Net plant and equipment Total assets $ 0 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

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