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15 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 Earnings before interest and taxes Interest expense Taxable income Taxes (22%) Net Income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets EFN $ 33,127 73,733 $ 20,440 43,380 89,960 $ 153,780 $ 421,000 $ 745,000 580,000 16,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets 574,780 $ 149,000 12,000 $ 137,000 30,140 $ 106,860 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g... 32.) $54,600 13,800 $ 68,400 $ 128,000 $ 113,500 264,880 $ 378,380 $ 574,780

15 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 Earnings before interest and taxes Interest expense Taxable income Taxes (22%) Net Income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets EFN $ 33,127 73,733 $ 20,440 43,380 89,960 $ 153,780 $ 421,000 $ 745,000 580,000 16,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets 574,780 $ 149,000 12,000 $ 137,000 30,140 $ 106,860 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g... 32.) $54,600 13,800 $ 68,400 $ 128,000 $ 113,500 264,880 $ 378,380 $ 574,780

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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15 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 Earnings before interest and taxes Interest expense Taxable income Taxes (22%) Net Income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets EFN $ 33,127 73,733 $ 20,440 43,380 89,960 $ 153,780 $ 421,000 $ 745,000 580,000 16,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets 574,780 $ 149,000 12,000 $ 137,000 30,140 $ 106,860 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g... 32.) $ 54,600 13,800 $ 68,400 $ 128,000 $ 113,500 264,880 $ 378,380 $ 574,780
Transcribed Image Text:15 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 Earnings before interest and taxes Interest expense Taxable income Taxes (22%) Net Income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets EFN $ 33,127 73,733 $ 20,440 43,380 89,960 $ 153,780 $ 421,000 $ 745,000 580,000 16,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets 574,780 $ 149,000 12,000 $ 137,000 30,140 $ 106,860 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 25 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g... 32.) $ 54,600 13,800 $ 68,400 $ 128,000 $ 113,500 264,880 $ 378,380 $ 574,780
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