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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

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, fixed assets, and accounts payable increase spontaneously with sales.

CROSBY, INC. 2017 Income Statement
Sales $ 771,000
Costs 627,000
Other expenses 33,000
Earnings before interest and taxes $ 111,000
Interest paid 17,200
Taxable income $ 93,800
Taxes (23%) 21,574
Net income $ 72,226
Dividends $ 20,640
Addition to retained earnings 51,586

CROSBY, INC. Balance Sheet as of December 31, 2017
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 26,040 Accounts payable $ 64,600
Accounts receivable 35,540 Notes payable 20,000
Inventory 72,140 Total $ 84,600
Total $ 133,720 Long-term debt $ 119,000
Owners equity
Fixed assets Common stock and paid-in surplus $ 118,000
Net plant and equipment $ 228,000 Retained earnings 40,120
Total $ 158,120
Total assets $ 361,720 Total liabilities and owners equity $ 361,720

What is the EFN if the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.)

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