The most recent financial statements for Kuhlmann Machine 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.

Kuhlmann Machine Inc.

2017 Statement of Comprehensive IncomeSales $755,000Costs 590,000Other expenses 11,000Earnings before interest and taxes $154,000Interest paid 12,000Taxable income $142,000Taxes (40%) 56,800Net income $85,200Dividends$34,080 Addition to retained earnings 51,120

Kuhlmann Machine Inc.

Statement of Financial Position as of December 31, 2017AssetsLiabilities and Owners' EquityCurrent assets Current liabilities Cash$26,500Accounts payable$69,200Accounts receivable 41,900Notes payable 18,200Inventory 88,100Total$87,400Total$156,500Long-term debt$138,000 Owners' equity Fixed assets Common stock and paid-in surplus$124,000Net plant and equipment$240,000Retained earnings 47,100 Total$171,100Total assets$396,500Total liabilities and owners' equity$396,500

Complete the pro forma statement of comprehensive income below. (Input all amounts as positive values. Omit $ sign in your response.)

Kuhlmann Machine Inc.

Pro Forma Statement of Comprehensive Income 20 % Sales

GrowthSales$ CostsOther expensesEBIT$ InterestTaxable income$ Taxes (40%)Net income$ Dividends$ Add. to RE

Complete the pro forma statement of financial position below.

Kuhlmann Machine Inc.

Pro Forma Statement of Financial PositionAssetsLiabilities and Owners' EquityCurrent assets Current liabilities Cash$ Accounts payable$ Accounts receivable$ Notes payable$ Inventory$ Total$ Total$ Long-term debt$ Owners' equity Fixed assets Common stock and paid-in surplus$ Net plant and equipment$ Retained earnings$ Total$ Total assets$ Total liabilities and owners' equity$

Calculate the EFN for 20% growth rates.

20%EFN$