Problem 4-28 EFN and Internal Growth (LO2, 3] The most recent financial statements for Crosby. Inc., follow. 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. Assume the firm is operating at full capacity and the debt- equity ratio is held constant. CROSBY, INC. 2017 Income Statement Sales $762,000 Costs 618.000 Other expenses 28.500 Earnings before interest and $ 115,500 taxes Interest paid 13.600 Taxable income Taxes (24%) $ 101,900 24.456 Net income $ 77.444 Dividends Addition to retained earnings $ 37,740 39,704 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25,140 Accounts payable $ 61,000 Accounts receivable 34,550 Notes payable 17,300 Inventory 71,330 Total $ 78,300 Total $ 110,000 $ 131020 Long-term debt Owners' equity Common stock and paid-in surplus $ 219,000 Retained earnings $ 105,000 Fixed assets Net plant and equipment 56.720 Total $ 161,720 Total assets $350.020 Total liabilities and owners' equity $350.020 Complete the pro forma income statements below. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) Pro Forma Income Statement 10% Sales Growth 15% Sales Growth 40% Sales Growth Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (24%) Net income Dividends Add to RE Calculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations and round your answers to the nearest whole dollar amount.) 10% 15% 40% EFN