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The most recent financial statements for Hopington Tours Inc. follow. Sales for 2018 are projected to grow by 25%. Interest expense will remain constant; the

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The most recent financial statements for Hopington Tours Inc. follow. Sales for 2018 are projected to grow by 25%. 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 (35%) Net income Dividends $21,440 Addition to retained earnings 65,660 $746,000 581, eee 17,000 $148,eee 14,000 $134,000 46,900 $ 87,100 he 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 $ 25,6ee Accounts payable 41, eee Notes payable 87,200 Total $153,880 Long-term debt Owners' equity Common stock and paid-in surplus $322,400 Retained earnings Total $476,280 Total liabilities and owners' equity $ 68,300 17,380 $ 85,600 $129,000 Fixed assets Net plant and equipment $143,000 118,600 $261,600 $476,200 Total assets HOPINGTON TOURS INC. Pro Forma Statement of Comprehensive Income 25 % Sales Growth Sales $ Costs Other expenses EBIT $ Interest Taxable income $ Taxes (35%) Net income $ Dividends $ Add. to RE Complete the pro forma statement of financial position below. Assets Current assets Cash Accounts receivable Inventory Total HOPINGTON TOURS INC. Pro Forma 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 $ $ $ $ Fixed assets Net plant and equipment $ $ $ Total assets $ Calculate the EFN for 25% growth rates. 25% $ EFN

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