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 (25%)Net IncomeCROSBY, INCORPORATED2021 Income StatementDividendsAddition to retained earningsCurrent assetsCashAccounts receivableInventoryTotalFixed assetsNet plant and equipmentTotal assets$ 34,14038,235Assets$ 25,74035,21071,870$ 132,820CROSBY, INCORPORATEDBalance Sheet as of December 31, 2021$ 225,000$ 768,000624,00031,500$ 357,820$ 112,50016,000$ 96,50024,125$ 72,375Liabilities and Owners' EquityCurrent liabilitiesAccounts payableNotes payableTotalLong-term debtOwners' equityCommon stock and paid-in surplusRetained earningsTotalTotal liabilities and owners' equity$ 63,40019,100$ 82,500$ 116,000$ 111,00048,320$ 159,320$ 357,820 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 (25%)Net incomeDividendsAdd to RECalculate the EFN for 10, 15 and 40 percent growth rates. (A negative answer should beIndicated by a minus sign. Do not round Intermediate calculations and round youranswers to the nearest whole number, e.g., 32.)EFNPro Forma Income Statement10% Sales Growth 15% Sales Growth 40% Sales Growth10%15%40%

Income statement is a financial statement in which a firm's all expenses, income, gains or losses…

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 CROSBY, INCORPORATED 2021 Income Statement Earnings before interest and taxes Interest expense Taxable income $768,000 624,000 31,500 $ 112,500 16,000 $ 96,500

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 CROSBY, INCORPORATED 2021 Income Statement Earnings before interest and taxes Interest expense Taxable income $768,000 624,000 31,500 $ 112,500 16,000 $ 96,500

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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Tomey Supply Company’s financial statements for the most recent fiscal year are shown below. The company projects that sales will increase by 27 percent next year. Assume that all costs and assets increase directly with sales. The company has a constant 39 percent dividend payout ratio and has no plans to issue new equity. Any financing needed will be raised through the sale of long-term debt. Prepare pro forma financial statements for the coming year based on this information, and calculate the EFN for Tomey. Tomey Supply Company Income Statement and Balance Sheet. Income Statement Balance Sheet Revenues $1,768,121 Assets Costs 1,116,487 Current Assets $280,754 EBT 651,634 Net Fixed Assets 713,655 Taxes (35%) 228,072 Total assets $994,409 Net Income $423,562 Liabilities and Equity: Current Liabilities $167,326 Long-term…
The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain constant; the tax rate and the dividend payout rate will also 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. CROSBY, INCORPORATED 2020 Income Statement Sales $ 756,000 Costs 612,000 Other expenses 25,500 Earnings before interest and taxes $ 118,500 Interest paid 11,200 Taxable income $ 107,300 Taxes (23%) 24,679 Net income $ 82,621 Dividends $ 41,340 Addition to retained earnings 41,281 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 24,540 Accounts payable $ 58,600 Accounts receivable 33,890 Notes payable 15,500…
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1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all…
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