Homework Help is Here – Start Your Trial Now!
Business
Finance
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. Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (22%) Net income Dividends Addition to retained earnings Inventory Total Current assets Cash Accounts receivable CROSBY, INCORPORATED 2020 Income Statement Total assets Sales Costs Fixed assets Net plant and equipment $227,000 Other expenses EBIT Interest paid Taxable income Taxes (22%) Net income $ 32,940 40,926 Dividends Add to RE $ 25,940 35,430 72,050 $ 133,420 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $360,420 $ 770,000 626,000 32,500 $ 111,500 16,800 $ 94,700 20,834 $ 73,866 10% Sales Growth Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings $ 113,000 45,520 Total $ 158,520 Total liabilities and owners' equity $360,420 Pro Forma Income Statement $ 64,200 19,700 $ 83,900 $ 118,000 15% Sales Growth 40% Sales Growth

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. Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (22%) Net income Dividends Addition to retained earnings Inventory Total Current assets Cash Accounts receivable CROSBY, INCORPORATED 2020 Income Statement Total assets Sales Costs Fixed assets Net plant and equipment $227,000 Other expenses EBIT Interest paid Taxable income Taxes (22%) Net income $ 32,940 40,926 Dividends Add to RE $ 25,940 35,430 72,050 $ 133,420 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $360,420 $ 770,000 626,000 32,500 $ 111,500 16,800 $ 94,700 20,834 $ 73,866 10% Sales Growth Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings $ 113,000 45,520 Total $ 158,520 Total liabilities and owners' equity $360,420 Pro Forma Income Statement $ 64,200 19,700 $ 83,900 $ 118,000 15% Sales Growth 40% Sales Growth

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
Problem 1PS
See similar textbooks
icon
Related questions
Topic Video
Question

Ee 247.

Calculate the EFN for 10, 15 and 40 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.)
Transcribed Image Text:Calculate the EFN for 10, 15 and 40 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.)
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. Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (22%) Net income CROSBY, INCORPORATED 2020 Income Statement Dividends $ 32,940 Addition to retained earnings 40,926 Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment $227,000 Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (22%) Net income Dividends Add to RE $ 25,940 35,430 72,050 $133,420 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 770,000 626,000 32,500 $111,500 16,800 $ 94,700 20,834 $ 73,866 10% Sales Growth Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings $ 113,000 45,520 $ 158,520 $360,420 Total liabilities and owners' equity $360,420 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Total Pro Forma Income Statement $ 64,200 19,700 $ 83,900 $ 118,000 15% Sales Growth 40% Sales Growth
Transcribed Image Text: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. Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (22%) Net income CROSBY, INCORPORATED 2020 Income Statement Dividends $ 32,940 Addition to retained earnings 40,926 Current assets Cash Accounts receivable Inventory Total Total assets Fixed assets Net plant and equipment $227,000 Sales Costs Other expenses EBIT Interest paid Taxable income Taxes (22%) Net income Dividends Add to RE $ 25,940 35,430 72,050 $133,420 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 770,000 626,000 32,500 $111,500 16,800 $ 94,700 20,834 $ 73,866 10% Sales Growth Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings $ 113,000 45,520 $ 158,520 $360,420 Total liabilities and owners' equity $360,420 Complete the pro forma income statements below. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Total Pro Forma Income Statement $ 64,200 19,700 $ 83,900 $ 118,000 15% Sales Growth 40% Sales Growth
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS