The most recent financial statements for Crosby, Incorporated, follow. 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. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses $ 761,000 617,000 28,000 Earnings before interest and taxes Interest paid $ 116,000 13,200 Taxable income Taxes (23%) 102,800 23,644 Net Income $ 79,156 Dividends Addition to retained earnings $ 38,340 40,816 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,040 Accounts payable Accounts receivable 34,440 Notes payable $ 60,600 17,000 Inventory 71,240 Total $ 77,600 Total $ 130,720 Long-term debt $ 109,000 Fixed assets Net plant and equipment $ 218,000 Owners' equity Common stock and paid-in surplus Retained earnings $ 104,000 58,120 Total $ 162,120 Total assets $ 348,720 Total abilities and owners' equity $ 348,720 Answer is complete but not entirely correct. Pro Forma Income Statement 15% Sales Growth 20% Sales Growth 45% Sales Growth Sales S 875,150 709,550 Costs 913,200 740,400 Other expenses 32,200 33,600 EBIT $ 133,400 S $ Interest paid Taxable income Taxes (23%) Net income 13,200 120,200 27,646 92,554 44,426 48,128 S 1,103,450 894,650 40,600 168 200 13 200 155,000 35,650 119,350 57 288 62,062 139,200 13 200 126,000 29,980 % 97,020 46,570 % 50,450 X S $ Dividends $ $ Add to RE Answer is complete but not entirely correct. 15% 20% 45% EEN S (41.795) $ (41.176) (20,620)