Chapter 4 Homework i U 7 The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 20 percent. 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. 1 points CROSBY, INCORPORATED 2020 Income Statement Sales Costs Other expenses $ 686,530 554,420 14,020 eBook Hint Earnings before interest and taxes Interest paid $ 118,090 12,090 Print $ 106,000 22,260 Taxable income Taxes (21%) Net income $ 83,740 References Dividends $ 27,475 Addition to retained earnings 56,265 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 20,940 Accounts payable Accounts receivable 31,970 Notes payable $ 53,790 13,215 Inventory 71,320 Total $ 67,005 Total $ 124,230 Long-term debt $ 127,500 Fixed assets Net plant and equipment Owners' equity Common stock and paid-in surplus $ 341,980 $ 105,000 Retained earnings 166,705 Total $ 271,705 7 Total assets $ 466,210 Total liabilities and owners' equity $ 466,210 1 points In 2020, the firm operated at 80 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 and round your answers to the nearest whole number, e.g., 32.) eBook Sales 000 Hint Pro Forma Income Statement $ 823,836 Costs 665,304 Other expenses 16,824 EBIT $ 141,708 Interest 12,090 Taxable income 129,618 Taxes 27,220 Net income $ 102,398 Print $ References Assets $ $ Current assets Cash Accounts receivable Inventory Total current assets Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities 25,128 Accounts payable $ 38,364 Notes payable 85,584 Total current liabilities $ 149,076 Long-term debt $ Owners' equity Common stock and paid-in surplus $ 328,301 Retained earnings Total owner's equity $ 477,377 Total liabilities and owners' equity $ 64,548 13,215 77,763 127,500 CA $ Fixed assets Net plant and equipment $ 105,000 235,506 340,506 545,769 $ $ Total assets $ What is the EFN? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) EFN