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The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also
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 766,000 Costs 622,000 Other expenses 30,500 Earnings before interest and $113,500 taxes es Interest paid 15,200 Taxable income Taxes (23%) $ 98,300 22,609 Net income $ 75,691 Dividends $ 35,340 40,351 Addition to retained earnings CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Liabilities and Owners' Equity Current liabilities Assets $ 25,540 Accounts payable 34990 Natec navahle Current assets Cash Arenunte rarahvahlo: $ 62,600 18.500
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