The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax...
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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 remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses $ 769,000 625,000 32,000 Earnings before interest and $112,000 taxes Interest paid 16,400 Taxable income Taxes (21%) $ 95,600 20,076 Net income $ 75,524 Dividends Addition to retained earnings $ 22,040 53,484 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Liabilities and Owners' Equity Assets Current assets Cash Accounts receivable Inventory Total Current liabilities $ 25,840 Accounts payable 35,320 Notes payable 71,960 Total $ 133,120 Long-term debt $ 63,800 19,400 $ 83,200 $117,000 Owners' equity Fixed assets Net plant and equipment $226,000 Common stock and paid-in surplus Retained earnings $112,000 46,920 Total $158,920 Total assets $ 359,120 Total liabilities and owners' equity $ 359,120 Complete the pro forma income statements below. (Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 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. CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses $ 769,000 625,000 32,000 Earnings before interest and $112,000 taxes Interest paid 16,400 Taxable income Taxes (21%) $ 95,600 20,076 Net income $ 75,524 Dividends Addition to retained earnings $ 22,040 53,484 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Liabilities and Owners' Equity Assets Current assets Cash Accounts receivable Inventory Total Current liabilities $ 25,840 Accounts payable 35,320 Notes payable 71,960 Total $ 133,120 Long-term debt $ 63,800 19,400 $ 83,200 $117,000 Owners' equity Fixed assets Net plant and equipment $226,000 Common stock and paid-in surplus Retained earnings $112,000 46,920 Total $158,920 Total assets $ 359,120 Total liabilities and owners' equity $ 359,120 Complete the pro forma income statements below. (Input all answers as positive values. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
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