Business

FinanceQ&A LibraryThe most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 30 percent Interest expense will remain constant, the tax rate and the dividend payout rate will also remain cons sts, other expenses, current assets, and accounts payable increase spontaneously with sales. CROSBY, INC 2017 Income Statement Sales Costs Other expenses $749,000 584,000 20,000 Earnings before interest and taxes Interest paid $145,000 16,000 Taxable income Taxes (21%) $129,000 27,090 Net income $101,910 $31,592 Dividends Addition to retained earnings 70,318 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable 20,840 Accounts payable 43,780 Notes payable 55,000 14,200 $ 69,200 $132,000 Inventory 3,960 Total Total $ 158,580 Long-term debt Fixed assets Owners equity Net plant and equipment 425,000 Common stock and paid-in surplus $115,500 266,880 $382,380 s 583,580 Total liabilities and owners equity $583,580 Retained earnings Total Total assets in 2017, the firm operated at 80 percent of capacity Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are so'd so that the company has a 100 percent asset utlization. (Do not round intermediate calculations.)Start your trial now! First week only $4.99!*arrow_forward*

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