The most recent financial statements for Crosby. Incorporated, appear below. Sales for2022 are projected to grow by 25 percent. Interest expense will remain constant; the taxrate and the dividend payout rate also will remain constant. Costs, other expenses,current assets, fixed assets, and accounts payable increase spontaneously with sales.SalesCostsOther expensesEarnings before interest and taxesInterest expenseTaxable incomeTaxes (24%)Net incomeDividendsAddition to retained earningsCROSBY, INCORPORATED2021 Income StatementCurrent assetsCashAccounts receivableInventoryTotalFixed assetsNet plant and equipmentTotal assetsEFN$ 23,44050,584Assets$ 25,64035,10071,780$ 132,520CROSBY, INCORPORATEDBalance Sheet as of December 31, 2021$ 224,000$ 767,000623,00031,000$ 356,520$ 113,00015,600$ 97,40023.376$ 74,024Liabilities and Owners' EquityCurrent liabilitiesAccounts payableNotes payableTotalLong-term debtOwners' equityCommon stock and paid-in surplusRetained earningsTotalTotal liabilities and owners' equityWhat is the EFN if the firm wishes to keep its debt-equity ratio constant? (Do not roundIntermediate calculations and round your answer to the nearest whole number, e.g.,32.)$ 63,00018,800$ 81,800$ 115,000$ 114,00045,720$ 159,720$ 356.520

Total assets=$356520Account payable=$63000Sales=$767000Net income=$74024Retained…

The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 25 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. Sales Costs Other expenses CROSBY, INCORPORATED 2021 Income Statement Earnings before interest and taxes Interest expense Taxable income Taxes (24%) Net income Dividends Addition to retained earnings $ 767,000 623,000 31,000 $ 113,000 15,600 $ 97,400 23,376 $ 74,024 $ 23,440 50,584 CROSBY, INCORPORATED

The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 25 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. Sales Costs Other expenses CROSBY, INCORPORATED 2021 Income Statement Earnings before interest and taxes Interest expense Taxable income Taxes (24%) Net income Dividends Addition to retained earnings $ 767,000 623,000 31,000 $ 113,000 15,600 $ 97,400 23,376 $ 74,024 $ 23,440 50,584 CROSBY, INCORPORATED

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 20P

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