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

 

 

 

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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 $752,000 587,000 23,000 Costs Other expenses Earnings before interest and taxes $ 142,000 Interest paid 19,000 $ 123,000 29,520 Taxable income Taxes (24%) Net income $ 93,480 Dividends $28,044 Addition to retained 65,436 earnings CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,140 $ 55,300 Accounts payable Notes payable Accounts receivable 44,080 14,500 Inventory 96,960 Total $ 69,800 Total $ 162,180 Long-term debt $ 135,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings Net plant and equipment $428,000 $ 117,000 268,380 Total $385,380 Total liabilities and owners" Total assets $ 590,180 $ 590,180 equity 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.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest Taxable income Тахes Net income Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts payable Accounts receivable Notes payable Inventory Total Total Long-term debt Owners' equity Fixed assets Common stock and paid-in surplus Net plant and equipment Retained earnings Total Total assets Total liabilities and owners' equity What is the EFN? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) EFN 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 $752,000 587,000 23,000 Costs Other expenses Earnings before interest and taxes $ 142,000 Interest paid 19,000 $ 123,000 29,520 Taxable income Taxes (24%) Net income $ 93,480 Dividends $28,044 Addition to retained 65,436 earnings CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 21,140 $ 55,300 Accounts payable Notes payable Accounts receivable 44,080 14,500 Inventory 96,960 Total $ 69,800 Total $ 162,180 Long-term debt $ 135,000 Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings Net plant and equipment $428,000 $ 117,000 268,380 Total $385,380 Total liabilities and owners" Total assets $ 590,180 $ 590,180 equity 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.) Pro Forma Income Statement Sales Costs Other expenses EBIT Interest Taxable income Тахes Net income Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts payable Accounts receivable Notes payable Inventory Total Total Long-term debt Owners' equity Fixed assets Common stock and paid-in surplus Net plant and equipment Retained earnings Total Total assets Total liabilities and owners' equity What is the EFN? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) EFN

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