Practice Test (Ch 4-6) 0 11 Problem 4-26 Calculating EFN [LO2] 0.66 points Skipped eBook The most recent financial statements for Crosby, Inc., follow. Sales for 2018 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. CROSBY, INC. 2017 Income Statement Sales $757,000 Costs 613,000 Other expenses 26,000 Earnings before interest $ 118,000 and taxes Interest paid 11,600 Taxable income $106,400 Taxes (24%) 25,536 Net income $ 80,864 References Dividends Addition to retained earnings $30,440 50,424 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,640 Accounts payable $ 59,000 Accounts receivable 34,000 Notes payable 15,800 Inventory 70,880 Total $ 74,800 Total $ 105,000 $ 129,520 Long-term debt Owners' equity Common stock and paid-in surplus $ 214,000 Retained earnings $ 104,000 Fixed assets Net plant and equipment 59,720 Total $ 163,720 Total assets $343,520 Total liabilities and owners' equity $343,520 What is the EFN if the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g., 32.) EFN