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The most recent financial statements for Scott, Inc., appear below. Interest expense will remain constant; the tax rate and the dividend payout rate also will

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The most recent financial statements for Scott, Inc., appear below. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales $759,000 Costs 615,000 Other expenses 27,000 Earnings before interest and taxes Interest expense $ 117,000 12,400 Taxable income Taxes (21%) $ 104,600 21,966 Net income $ 82,634 Dividends Addition to retained earnings $29,040 53,594 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,840 Accounts payable $ 59,800 Accounts receivable 34,220 Notes payable 16,400 Inventory 71,060 Total $ 76,200 ---- SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,840 Accounts payable $ 59,800 Accounts receivable 34,220 Notes payable 16,400 Inventory 71,060 Total $ 76,200 Total $ 130,120 Long-term debt $ 107,000 Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment $102,000 $216,000 60,920 Total $ 162,920 Total assets $346,120 Total liabilities and owners' equity $ 346,120 Complete the pro forma income statements below. (Input all answers as positive values. Do not round intermediate calculations.) Pro Forma Income Statement 20% Sales Growth 25% Sales Growth 30% Sales Growth Sales Costs Other expenses EBIT Interest expense Taxable income Taxes Net income Dividends Add to RE Calculate the EFN for 20, 25 and 30 percent growth rates. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) 20% 25% 30% EFN

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