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. Assume the firm is operating at full capacity and the debt-equity ratio is held constant.

Complete the pro forma income statements below. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Calculate the EFN for 15, 20 and 45 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.)

SCOTT, INC. 2019 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest expense $759,000 615,000 27,000 $ 117,000 12,400 Taxable income Taxes (21%) $ 104,600 21,966 Net income $ 82,634 Dividends Addition to retained earnings $39,540 43,094 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 24,840 Accounts payable $ 59,800 Accounts receivable 34,220 Notes payable 16,400 Inventory 71,060 Total $ 76,200 Total $ 130,120 Long-term debt $ 107,000 Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment $102,000 $216,000 60,920 Total $162,920 Total assets $ 346,120 Total liabilities and owners' equity $ 346,120 Pro Forma Income Statement 15% Sales Growth 20% Sales Growth 45% Sales Growth $ 838,200 X Sales Costs Other expenses EBIT Interest expense Taxable income Taxes (21%) Net income Dividends Add to RE 15% 20% 45% EFN