The most recent financial statements for Crosby, Inc., follow. Interest expense will remain constant; the...
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The most recent financial statements for Crosby, Inc., follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. Assume the firm is operating at full capacity and the debt-equity ratio is held constant. CROSBY, INC. 2017 Income Statement Sales Costs Other expenses 980,760 792,960 20,060 Earnings before $167,740 interest and taxes Interest paid 14,740 Taxable income Taxes (21%) $153,000 32,130 Net income 120,870 Dividends Addition to retained $39,250 81,620 earnings Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole dollar amount, e.g., 32.) Pro Forma Income Statement 20% Sales Growth 30% Sales Growth | 35% Sales Growth Sales Costs Other expenses EBIT Interest Taxable income | Taxes (21 %) Net income Dividends Add to RE Calculate the EFN for 20, 30, and 35 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole dollar amount, e.g., 32.) 20% 30% 35% EFN
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