Tomey Supply Companys financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 27 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 32 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey.

Tomey Supply Company Income Statement and Balance SheetIncome StatementBalance Sheet

Income Statement			Balance Sheet
Revenues	$1,768,121		Assets
Costs	1,116,487		Current Assets	$280,754
EBT	651,634		Net Fixed Assets	713,655
Taxes (35%)	228,072		Total assets	$994,409
Net Income	$423,562
			Liabilities and Equity:
			Current Liabilities	$167,326
			Long-term debt	319,456
			Common Stock	200,000
			Retained Earnings	307,627
			Total liabilities & equity	$994,409
Tomeys EFN is $