Problem 3-23 Calculating EFN The most recent financial statements for Scott, Inc., appear below. Sales for 2020 are projected to grow by 30 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. $ 771,000 627,000 33,000 SCOTT, INC 2019 Income Statement Sales Costs Other expenses Earnings before Interest and taxes Interest expense Taxable income Taxes (23%) $ 111,000 17,200 $ 93,800 21,574 Net Income $ 72,226 Dividends Addition to retained earnings $20,640 51,586 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 26,040 Accounts payable $ 64,600 Accounts receivable 35,540 Notes payable 20,000