In: Finance
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. |
CROSBY, INC. 2017 Income Statement |
||||||
Sales | $ | 763,000 | ||||
Costs | 619,000 | |||||
Other expenses | 29,000 | |||||
Earnings before interest and taxes | $ | 115,000 | ||||
Interest paid | 14,000 | |||||
Taxable income | $ | 101,000 | ||||
Taxes (25%) | 25,250 | |||||
Net income | $ | 75,750 | ||||
Dividends | $ | 26,240 | ||||
Addition to retained earnings | 49,510 | |||||
CROSBY, INC. Balance Sheet as of December 31, 2017 |
|||||||
Assets | Liabilities and Owners’ Equity | ||||||
Current assets | Current liabilities | ||||||
Cash | $ | 25,240 | Accounts payable | $ | 61,400 | ||
Accounts receivable | 34,660 | Notes payable | 17,600 | ||||
Inventory | 71,420 | Total | $ | 79,000 | |||
Total | $ | 131,320 | Long-term debt | $ | 111,000 | ||
Owners’ equity | |||||||
Fixed assets | Common stock and paid-in surplus | $ | 106,000 | ||||
Net plant and equipment | $ | 220,000 | Retained earnings | 55,320 | |||
Total | $ | 161,320 | |||||
Total assets | $ | 351,320 | Total liabilities and owners’ equity | $ | 351,320 | ||
Complete the pro forma income statements below. (Input all answers as positive values. Do not round intermediate calculations.) |
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.) |