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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 Earnings before interest and taxes Interest expense Taxable income Taxes (21%) Net income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings → Show Transcribed Text Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment Assets $ 27,475 56,265 $ 20,940 31,970 71,320 $124,230 $ 686,530 554,420 14,020 $ 118,090 12,090 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 341,980 $ 106,000 22,260 $ 83,740 C Liabilities and Owners' Equity Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus $ 105,000 Retained earnings 166,705 Total $271,705 $ 466,210 Total liabilities and owners' equity $ 466,210 Current liabilities $ 53,790 13,215 $ 67,005 $ 127,500

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 Earnings before interest and taxes Interest expense Taxable income Taxes (21%) Net income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings → Show Transcribed Text Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment Assets $ 27,475 56,265 $ 20,940 31,970 71,320 $124,230 $ 686,530 554,420 14,020 $ 118,090 12,090 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 341,980 $ 106,000 22,260 $ 83,740 C Liabilities and Owners' Equity Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus $ 105,000 Retained earnings 166,705 Total $271,705 $ 466,210 Total liabilities and owners' equity $ 466,210 Current liabilities $ 53,790 13,215 $ 67,005 $ 127,500

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 Earnings before interest and taxes Interest expense Taxable income Taxes (21%) Net income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings → Show Transcribed Text Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment Assets $ 27,475 56,265 $ 20,940 31,970 71,320 $ 124,230 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 341,980 $ 686,530 554,420 14,020 $ 466,210 $ 118,090 12,090 $ 106,000 22,260 $ 83,740 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus $ 105,000 Retained earnings 166,705 Total $ 271,705 $ 466,210 Total liabilities and owners' equity $ 53,790 13,215 $ 67,005 $ 127,500
Transcribed Image Text: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 Earnings before interest and taxes Interest expense Taxable income Taxes (21%) Net income CROSBY, INCORPORATED 2021 Income Statement Dividends Addition to retained earnings → Show Transcribed Text Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment Assets $ 27,475 56,265 $ 20,940 31,970 71,320 $ 124,230 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 341,980 $ 686,530 554,420 14,020 $ 466,210 $ 118,090 12,090 $ 106,000 22,260 $ 83,740 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus $ 105,000 Retained earnings 166,705 Total $ 271,705 $ 466,210 Total liabilities and owners' equity $ 53,790 13,215 $ 67,005 $ 127,500
Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Other expenses EBIT Interest expense Taxable income Taxes (21%) Net income Dividends Add to RE Pro Forma Income Statement 20% Sales Growth 30% Sales Growth 35% Sales Growth Calculate the EFN for 20, 30, and 35 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) EFN 20% 30% 35%
Transcribed Image Text:Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Sales Costs Other expenses EBIT Interest expense Taxable income Taxes (21%) Net income Dividends Add to RE Pro Forma Income Statement 20% Sales Growth 30% Sales Growth 35% Sales Growth Calculate the EFN for 20, 30, and 35 percent growth rates. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) EFN 20% 30% 35%
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