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 $758,000 593,000 29,000 Other expenses Earnings before interest and taxes Interest paid $ 136,000 25,000 Taxable income Taxes (25%) $ 111,000 27,750 Net income $ 83,250 Dividends Addition to retained earnings $24,975 58,275 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,740 Accounts payable $ 55,900 Accounts receivable 44,680 Notes payable 15,100 Inventory 102,960 Total $ 71,000 Total $ 169,380 Long-term debt $ 141,000 Fixed assets Net plant and equipment $434,000 Owners' equity Common stock and paid-in $120.000 surplus Retained earnings 271,380 Total $ 391,380 Total assets $603,380 Total liabilities and owners' equity $603.380 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 that the company has a 100 percent asset utilization. (Do not round intermediate calculations.) Answer is complete and correct. Pro Forma Income Statement Sales $ 985,400 Costs 770,900 Other expenses 37,700 EBIT 176,800 Interest 25,000 Taxable income 151,800 Taxes 37,950 Net income 113,850 Answer is not complete. Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable 28,262 58,084 133,848 220,194 72,670 15,100 87,770 141,000 Inventory Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Fixed assets Net plant and equipment 564,200 $ 120,000 351,075 471,075 699,845 Total Total assets Total liabilities and owners' equity