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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. 23 SCOTT, INC. 2019 Income Statement Sales Costs Other expenses $758,000 614,000 26,500 Earnings before interest and taxes Interest expense $ 117,500 12,000 Taxable income Taxes (25%) $ 105,500 26,375 Net income $ 79,125 Dividends Addition to retained earnings $ 29,740 49,385 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,740 Accounts payable $ 59,400 Accounts receivable 34,110 Notes payable 16,100 Inventory 70,970 Total $ 75,500 Total $ 129,820 Long-term debt $ 106,000 Fixed assets Owners' equity Common stock and paid-in $ 101,000 surplus $215,000 Retained earnings 62,320 Net plant and equipment A Total $ 163,320 Total assets $344,820 Total liabilities and owners equity $344,820 Complete the pro formo income statements below. (Input all answers as positive values. Do not round intermediate calculations.) 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.) 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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