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The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 25 percent. Interest expense will remain constant;
The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 25 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, INCORPORATED 2020 Income Statement $ Sales 762,000 Costs 597,000 Other expenses 33,000 Earnings before interest and $132,000 taxes Interest paid 29,000 $ Taxable income 103,000 Taxes (24%) Net income Dividends Addition to retained earnings 24,720 $ 78,280 $ 23,484 54,796
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