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The most recent financial statements for Crosby Incorporated, follow. Sales for 2021 are projected to grow by 20 percent. Interest expense will remain constant;
The most recent financial statements for Crosby Incorporated, follow. Sales for 2021 are projected to grow by 20 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 753,000 Costs 588,000 Other expenses 24,000 Earnings before interest and $141,000 taxes Interest paid 20,000 Taxable income $121,000 Taxes (25%) Net income Dividends Addition to retained earnings $ 28,133 62,617 30,250 $ 90,750
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