FINC$201-$ Module $4-$ Chapter $4$ Problem Set $i$

S$04-27$ EFN and Internal Growth $[$LO$2,3]$

The most recent financial statements for Crosby, Incorporated, 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.

$\backslash$table$[[\backslash$table$[[$CROSBY$,$ INCORPORATED$],[2020$ Income Statement$]],,],[$Sales$,$$$,],[$Costs$,554,420,],[$Other expenses,$14,020,],[$Earnings before interest and taxes,$$118,090,],[$Interest paid,$12,090,],[$Taxable income,$106,000,],[$Taxes $(21\%),22,260,],[$Net income,$$83,740,],[$Dividends$,$$$27,475,,],[$Addition to retained earnings,$56,265,,],[\backslash$table$[[$CROSBY$,$ INCORPORATED$],[$Balance Sheet as of December $31,2020]]],[\{$

$\backslash$table$[[$Assets$],[$Current assets$]]\},$Liabilities and Owners' Equity$],[$Current liabilities$],[$Current assets,Accounts payable,$$53,790$