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The most recent financial statements for Crosby. Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant co ; the tax rate and the dividend payout rate will also remain other expenses, current assets, fixed assets, and accounts payable increase Costs, usly with sales. CROSBY, INC 2017 Income Statement Saies Costs Other expenses $765,000 621.000 30,000 Earnings before interest and taxes Interest paid s 114.000 4,800 Taxable income Taxes (22%) $ 99,200 21,824 Net income s 77,378 Dividends Addition to retained earnings 5 24.840 52,536 CROSBY. INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current sssets Current liabilities Cash Accounts receivable s 25,440 Accounts paysble s 62.200 34.880 Notes payable 18,200 S 80,400 s 113,000 Inventory 71.600 Total Total $ 131.920 Long-term debt Owners equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment $222.000 112.000 48.520 S 180,520 5353.920 Total Total assets 5 253.920 Total liabilities and owners equity What is the EFN f the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g 32.) EFN

The most recent financial statements for Crosby. Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant co ; the tax rate and the dividend payout rate will also remain other expenses, current assets, fixed assets, and accounts payable increase Costs, usly with sales. CROSBY, INC 2017 Income Statement Saies Costs Other expenses $765,000 621.000 30,000 Earnings before interest and taxes Interest paid s 114.000 4,800 Taxable income Taxes (22%) $ 99,200 21,824 Net income s 77,378 Dividends Addition to retained earnings 5 24.840 52,536 CROSBY. INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current sssets Current liabilities Cash Accounts receivable s 25,440 Accounts paysble s 62.200 34.880 Notes payable 18,200 S 80,400 s 113,000 Inventory 71.600 Total Total $ 131.920 Long-term debt Owners equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment $222.000 112.000 48.520 S 180,520 5353.920 Total Total assets 5 253.920 Total liabilities and owners equity What is the EFN f the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g 32.) EFN

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter3: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 19SP
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The most recent financial statements for Crosby. Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant co ; the tax rate and the dividend payout rate will also remain other expenses, current assets, fixed assets, and accounts payable increase Costs, usly with sales. CROSBY, INC 2017 Income Statement Saies Costs Other expenses $765,000 621.000 30,000 Earnings before interest and taxes Interest paid s 114.000 4,800 Taxable income Taxes (22%) $ 99,200 21,824 Net income s 77,378 Dividends Addition to retained earnings 5 24.840 52,536 CROSBY. INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current sssets Current liabilities Cash Accounts receivable s 25,440 Accounts paysble s 62.200 34.880 Notes payable 18,200 S 80,400 s 113,000 Inventory 71.600 Total Total $ 131.920 Long-term debt Owners equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment $222.000 112.000 48.520 S 180,520 5353.920 Total Total assets 5 253.920 Total liabilities and owners equity What is the EFN f the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g 32.) EFN
Transcribed Image Text:The most recent financial statements for Crosby. Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant co ; the tax rate and the dividend payout rate will also remain other expenses, current assets, fixed assets, and accounts payable increase Costs, usly with sales. CROSBY, INC 2017 Income Statement Saies Costs Other expenses $765,000 621.000 30,000 Earnings before interest and taxes Interest paid s 114.000 4,800 Taxable income Taxes (22%) $ 99,200 21,824 Net income s 77,378 Dividends Addition to retained earnings 5 24.840 52,536 CROSBY. INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current sssets Current liabilities Cash Accounts receivable s 25,440 Accounts paysble s 62.200 34.880 Notes payable 18,200 S 80,400 s 113,000 Inventory 71.600 Total Total $ 131.920 Long-term debt Owners equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment $222.000 112.000 48.520 S 180,520 5353.920 Total Total assets 5 253.920 Total liabilities and owners equity What is the EFN f the firm wishes to keep its debt-equity ratio constant? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount, e.g 32.) EFN
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