Question
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
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 $ 773,000 Costs 629,000 Other expenses 34,000 Earnings before interest and taxes $ 110,000 Interest paid 18,000 Taxable income $ 92,000 Taxes (25%) 23,000 Net income $ 69,000 Dividends $ 19,240 Addition to retained earnings 49,760 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners Equity Current assets Current liabilities Cash $ 26,240 Ac
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