The most recent financial statements for Hopington Tours Inc. follow. Sales for 2018 are projected to grow by 20%. 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. The firm is operating at full capacity and no new debt or equity is issued. HOPINGTON TOURS INC. 2017 Statement of Comprehensive Income Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (40%) Net income Dividends $32,400 Addition to retained earnings 48,600 $762,000 597,000 18,000 $147,000 12,000 $135,000 54,000 $ 81,000 HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2017 Liabilities and Owners' Equity Current liabilities Assets Current assets Assets Current assets Cash Accounts receivable Inventory Total HOPINGTON TOURS INC. Statement of Financial Position as of December 31, 2017 Liabilities and Owners' Equity Current liabilities $ 27,200 Accounts payable 42,600 Notes payable 88,888 Total $158,600 Long-term debt Owners' equity Common stock and paid-in surplus $230,000 Retained earnings Total $388,600 Total liabilities and owners' equity $ 69,900 18,900 $ 88,800 $121,000 Fixed assets Net plant and equipment $131,000 47,800 $ 178,800 $388,600 Total assets Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values. Omit $ sign in your response.) HOPINGTON TOURS INC. Pro Forma Statement of Comprehensive Income 20 % Sales Growth Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values. Omit $ sign in your response.) HOPINGTON TOURS INC. Pro Forma Statement of Comprehensive Income 20 % Sales Growth Sales $ Costs Other expenses EBIT $ Interest Taxable income $ Taxes (40%) Net income $ Dividends $ Add. to RE Complete the pro forma statement of financial position below. Complete the pro forma statement of financial position below. Assets Current assets Cash Accounts receivable Inventory Total $ $ HOPINGTON TOURS INC. Pro Forna Statement of Financial Position Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable $ Total $ Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity 5 51:35 Fixed assets Net plant and equipment Total assets Calculate the EFN for 20% growth rates. 20% EFN $
