Problem 3-22a(2)

The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2011 are projected to grow by 15.0%. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. Costs, other expenses, current assets, and accounts payable increase spontaneously with sales. The firm is operating at 90.0% capacity in 2010 and no new debt or equity is planned to be issued.

MOOSE TOURS, INC.

2011 Income Statement

Sales	$746,000
Costs	$581,000
Other expenses	$17,000
EBIT	$148,000
Interest expense	$14,000
Taxable income	$134,000
Taxes (40%)	$53,600
Net income	$80,400
Dividends	$21,440
Additions. to retained earnings	$58,960

MOOSE TOURS, INC. Balance Sheet as of December 31, 2011

Assets			Liabilities & Equity
Current assets			Current liabilities
Cash	$20,540		Accounts payable	$54,700
Accounts receivable	$32,860		Notes payable	$13,900
Inventory	$69,820		Total Current Liabilities	$68,600
Total Current Assets	$123,220		Long-term debt	$129,000
Fixed assets			Owners' equity
Net plant & equipment	$462,000
			Common stock & paid-in surplus	$115,000
			Retained earnings	$272,620
			Total Equity	$387,620
Total assets	$585,220		Total liabilities & equity	$585,220

What is the EFN assuming that fixed assets will only change if Next Year's Sales exceed Full Capacity Sales? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount. (e.g., 32))