What is the EFN?

The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales $748,000 Costs 583,000 Other expenses 19,000 Earnings before interest and taxes $146.000 Interest expense 15.000 Taxable income $131,000 Taxes (25%) 32,750 Net income $98.250 Dividends Addition to retained earnings $29,475 68,775 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20.740 Accounts payable $ 54,900 Accounts receivable 43.680 Notes payable 14,100 Inventory 92.960 Total $ 69,000 Total $ 131,000 Fixed assets Net plant and equipment $ 157,380 Long-term debt Owners' equity $424,000 Common stock and paid-in surplus Retained earnings Total $ 115,000 266,380 $ 381,380 Total assets $ 581.380 Total liabilities and owners' equity $ 581,380 In 2019, the firm operated at 75 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that the company cannot sell fixed assets. This implies that asset utilization may remain less than 100 percent next year as well. (Do not round Intermediate calculations and round your answers to the nearest whole number, e.g. 32.) The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets and accounts payable increase spontaneously with sales. SCOTT, INC. 2019 Income Statement Sales $748,000 Costs 583,000 Other expenses 19,000 Earnings before interest and taxes $146.000 Interest expense 15.000 Taxable income $131,000 Taxes (25%) 32,750 Net income $98.250 Dividends Addition to retained earnings $29,475 68,775 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20.740 Accounts payable $ 54,900 Accounts receivable 43.680 Notes payable 14,100 Inventory 92.960 Total $ 69,000 Total $ 131,000 Fixed assets Net plant and equipment $ 157,380 Long-term debt Owners' equity $424,000 Common stock and paid-in surplus Retained earnings Total $ 115,000 266,380 $ 381,380 Total assets $ 581.380 Total liabilities and owners' equity $ 581,380 In 2019, the firm operated at 75 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that the company cannot sell fixed assets. This implies that asset utilization may remain less than 100 percent next year as well. (Do not round Intermediate calculations and round your answers to the nearest whole number, e.g. 32.)