The most recent financial statements for Crosby, Incorporated, appear below. Interestexpense will remain constant, the tax rate and the dividend payout rate also will remainconstant. Costs, other expenses, current assets, fixed assets, and accounts payableincrease spontaneously with sales. Assume the firm is operating at full capacity and thedebt-equity ratio is held constant.SalesCostsOther expensesEarnings before interest and taxesInterest expenseTaxable incomeTaxes (21%)Net incomeCROSBY, INCORPORATED2021 Income StatementDividendsAddition to retained earnings→ Show Transcribed TextCurrent assetsCashAccounts receivableInventoryTotalTotal assetsFixed assetsNet plant and equipmentAssets$ 27,47556,265$ 20,94031,97071,320$ 124,230CROSBY, INCORPORATEDBalance Sheet as of December 31, 2021$ 341,980$ 686,530554,42014,020$ 466,210$ 118,09012,090$ 106,00022,260$ 83,740Liabilities and Owners' EquityCurrent liabilitiesAccounts payableNotes payableTotalLong-term debtOwners' equityCommon stock and paid-in surplus $ 105,000Retained earnings166,705Total$ 271,705$ 466,210Total liabilities and owners' equity$ 53,79013,215$ 67,005$ 127,500 Complete the pro forma income statements below. (Do not round intermediatecalculations and round your answers to the nearest whole number, e.g., 32.)SalesCostsOther expensesEBITInterest expenseTaxable incomeTaxes (21%)Net incomeDividendsAdd to REPro Forma Income Statement20% Sales Growth 30% Sales Growth 35% Sales GrowthCalculate the EFN for 20, 30, and 35 percent growth rates. (A negative answer shouldbe indicated by a minus sign. Do not round intermediate calculations and round youranswers to the nearest whole number, e.g., 32.)EFN20%30%35%

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Description: The most recent financial statements for Crosby, Incorporated, appear below. Interestexpense will remain constant, the tax rate and the dividend payout rate also will remainconstant. Costs, other expenses, current assets, fixed assets, and accounts

Interest expense, tax rate and the dividend payout rate will also remain constant.Costs and other…

Business

Finance

The most recent financial statements for Crosby, Incorporated, 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. Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (21%) Net income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings → Show Transcribed Text Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment Assets $ 27,475 56,265 $ 20,940 31,970 71,320 $124,230 $ 686,530 554,420 14,020 $ 118,090 12,090 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 341,980 $ 106,000 22,260 $ 83,740 C Liabilities and Owners' Equity Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus $ 105,000 Retained earnings 166,705 Total $271,705 $ 466,210 Total liabilities and owners' equity $ 466,210 Current liabilities $ 53,790 13,215 $ 67,005 $ 127,500

The most recent financial statements for Crosby, Incorporated, 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. Sales Costs Other expenses Earnings before interest and taxes Interest expense Taxable income Taxes (21%) Net income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings → Show Transcribed Text Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment Assets $ 27,475 56,265 $ 20,940 31,970 71,320 $124,230 $ 686,530 554,420 14,020 $ 118,090 12,090 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 341,980 $ 106,000 22,260 $ 83,740 C Liabilities and Owners' Equity Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus $ 105,000 Retained earnings 166,705 Total $271,705 $ 466,210 Total liabilities and owners' equity $ 466,210 Current liabilities $ 53,790 13,215 $ 67,005 $ 127,500

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 10P

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