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The most recent financial statements for Crosby, Incorporated, follow Sales for 2024 are projected to grow by 20 percent. Interest expense will remain constant, the tax rate and the dividend payout rate will also remain constant Costs, other expenses, current assets, and accounts payable Incresse spontaneously with sales. Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (243) Net Income Dividends Addition to retained earnings Current assets Cash CROSBY, INCORPORATED 2823 Income Statement Accounts receivable Inventory Total Fixed assets Not plant and equipent Total assets Assets Sales Costs Other expenses EBIT Interest Taxable income TAXAS Not income Pro Forme Income statement $ 31,335 69,745 43,588 91,960 156,180 $ 423,000 747,808 582,000 18,000 $ 147,000 14,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2023 133,000 31,928 $ 101,00 Liabilities and Owners' Equity Currant liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Comon stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 579,180 In 2023, the firm operated at 80 percent of capacity. Construct the pro forms Income statement and balance sheet for the company Assume that fixed assets are sold so that the company has a 100 percent asset utilization. Note: Do not round Intermediate calculations. $ 54,808 14,800 $ 58,800 $ 130,000 $ 114,508 265,880 $380,388 $ 579,188

The most recent financial statements for Crosby, Incorporated, follow Sales for 2024 are projected to grow by 20 percent. Interest expense will remain constant, the tax rate and the dividend payout rate will also remain constant Costs, other expenses, current assets, and accounts payable Incresse spontaneously with sales. Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (243) Net Income Dividends Addition to retained earnings Current assets Cash CROSBY, INCORPORATED 2823 Income Statement Accounts receivable Inventory Total Fixed assets Not plant and equipent Total assets Assets Sales Costs Other expenses EBIT Interest Taxable income TAXAS Not income Pro Forme Income statement $ 31,335 69,745 43,588 91,960 156,180 $ 423,000 747,808 582,000 18,000 $ 147,000 14,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2023 133,000 31,928 $ 101,00 Liabilities and Owners' Equity Currant liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Comon stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ 579,180 In 2023, the firm operated at 80 percent of capacity. Construct the pro forms Income statement and balance sheet for the company Assume that fixed assets are sold so that the company has a 100 percent asset utilization. Note: Do not round Intermediate calculations. $ 54,808 14,800 $ 58,800 $ 130,000 $ 114,508 265,880 $380,388 $ 579,188

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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The image contains detailed financial data of Crosby, Incorporated, including income statements and balance sheets for the year 2023. Additionally, it provides a template for constructing pro forma financial statements for 2024, assuming full asset utilization. Below is the transcription and description suitable for an educational website: --- ### Crosby, Incorporated: 2023 Financial Overview #### Income Statement - **Sales:** $19,880 - **Costs:** $11,928 - **Other expenses:** $818 - **Earnings before interest and taxes (EBIT):** $7,134 - **Interest paid:** $540 - **Taxable income:** $6,594 - **Taxes (34%):** $2,242 - **Net income:** $4,352 - **Dividends:** $1,305 - **Addition to retained earnings:** $3,047 #### Balance Sheet (as of December 31, 2023) - **Assets:** - **Current assets:** - Cash: $1,346 - Accounts receivable: $3,940 - Inventory: $6,230 - **Fixed assets:** - Net plant and equipment: $43,090 - **Total Assets:** $54,606 - **Liabilities and Owners' Equity:** - **Current liabilities:** - Accounts payable: $4,838 - Notes payable: $2,950 - **Long-term debt:** $12,040 - **Owners' equity:** - Common stock and paid-in surplus: $18,300 - Accumulated retained earnings: $16,478 - **Total liabilities and owners' equity:** $54,606 ### Pro Forma Financial Statements for 2024 #### Pro Forma Income Statement A template is provided for calculating the projected income statement with assumptions that sales grow by 20%, with interest expenses, tax rates, and dividends remaining constant. Costs, other expenses, current assets, and accounts payable are scaled according to sales growth. #### Pro Forma Balance Sheet - **Assets:** - Current assets - **Liabilities and Owners' Equity:** - Current liabilities - Long-term debt - Owners' equity ### Key Exercise - Calculate the External Financing Needed (EFN) where a negative value is indicated by a minus
Transcribed Image Text:The image contains detailed financial data of Crosby, Incorporated, including income statements and balance sheets for the year 2023. Additionally, it provides a template for constructing pro forma financial statements for 2024, assuming full asset utilization. Below is the transcription and description suitable for an educational website: --- ### Crosby, Incorporated: 2023 Financial Overview #### Income Statement - **Sales:** $19,880 - **Costs:** $11,928 - **Other expenses:** $818 - **Earnings before interest and taxes (EBIT):** $7,134 - **Interest paid:** $540 - **Taxable income:** $6,594 - **Taxes (34%):** $2,242 - **Net income:** $4,352 - **Dividends:** $1,305 - **Addition to retained earnings:** $3,047 #### Balance Sheet (as of December 31, 2023) - **Assets:** - **Current assets:** - Cash: $1,346 - Accounts receivable: $3,940 - Inventory: $6,230 - **Fixed assets:** - Net plant and equipment: $43,090 - **Total Assets:** $54,606 - **Liabilities and Owners' Equity:** - **Current liabilities:** - Accounts payable: $4,838 - Notes payable: $2,950 - **Long-term debt:** $12,040 - **Owners' equity:** - Common stock and paid-in surplus: $18,300 - Accumulated retained earnings: $16,478 - **Total liabilities and owners' equity:** $54,606 ### Pro Forma Financial Statements for 2024 #### Pro Forma Income Statement A template is provided for calculating the projected income statement with assumptions that sales grow by 20%, with interest expenses, tax rates, and dividends remaining constant. Costs, other expenses, current assets, and accounts payable are scaled according to sales growth. #### Pro Forma Balance Sheet - **Assets:** - Current assets - **Liabilities and Owners' Equity:** - Current liabilities - Long-term debt - Owners' equity ### Key Exercise - Calculate the External Financing Needed (EFN) where a negative value is indicated by a minus
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