Problem 3-21 Calculating EFN The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 25 percent. 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. Book erences SCOTT, INC. 2019 Income Statement Sales $760,000 Costs 595,000 Other expenses 31,000 Earnings before interest $ 134,000 and taxes Interest expense 27,000 Taxable income Taxes (22%) $ 107,000 23,540 Net income $ 83,460 Dividends Addition to retained earnings $25,038 58,422 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity H