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The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow...

The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales.

CROSBY, INC.
2017 Income Statement
  Sales $ 752,000
  Costs 587,000
  Other expenses 23,000
  Earnings before interest and taxes $ 142,000
  Interest paid 19,000
  Taxable income $ 123,000
  Taxes (24%) 29,520
  Net income $ 93,480
  Dividends $ 28,044
  Addition to retained earnings 65,436
CROSBY, INC.
Balance Sheet as of December 31, 2017
Assets Liabilities and Owners’ Equity
  Current assets   Current liabilities
    Cash $ 21,140     Accounts payable $ 55,300
    Accounts receivable 44,080     Notes payable 14,500
    Inventory 96,960       Total $ 69,800
      Total $ 162,180   Long-term debt $ 135,000
  Fixed assets   Owners’ equity
    Net plant and equipment $ 428,000     Common stock and paid-in surplus $ 117,000
    Retained earnings 268,380
      Total $ 385,380
  Total assets $ 590,180   Total liabilities and owners’ equity $ 590,180

In 2017, the firm operated at 75 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.)



What is the EFN? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.)

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