Problem $3-24$ EFN and Internal Growth

The most recent financial statements for Scott, Inc., appear below. Interest expense will remain constant; the tax rate and the dividend payout rate also will remain constant. Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales.

SCOTT, INC.

$2019$ Income Statement

Sales $ $756,000$

Costs $612,000$

Other expenses $25,500$

Earnings before interest and taxes $ $118,500$

Interest expense $11,200$

Taxable income $ $107,300$

Taxes $(23\%)24,679$

Net income $ $82,621$

Dividends $ $31,140$

Addition to retained earnings $51,481$

SCOTT, INC.

Balance Sheet as of December $31,2019$

Assets Liabilities and Owners$$ Equity

Current assets Current liabilities

Cash $ $24,540$ Accounts payable $ $58,600$

Accounts receivable $33,890$ Notes payable $15,500$

Inventory $70,790$ Total $ $74,100$

Total $ $129,220$ Long$-$term debt $ $104,000$

Owners$$ equity

Fixed assets Common stock and paid$-$in surplus $ $99,000$

Net plant and equipment $ $213,000$ Retained earnings $65,120$

Total $ $164,120$

Total assets $ $342,220$ Total liabilities and owners$$ equity $ $342,220$

Complete the pro forma income statements below. $($Input all answers as positive values. Do not round intermediate calculations.$)$

Calculate the EFN for $20,25$ and $30$ percent growth rates. $($Do not round intermediate calculations. A negative answer should be indicated by a minus sign.$)$