SThe most recent financial statements for Crosby, Incorporated, appear below. Sales for2022 are projected to grow by 30 percent. Interest expense will remain constant, the taxrate and the dividend payout rate also will remain constant. Costs, other expenses,current assets, fixed assets, and accounts payable Increase spontaneously with sales.SalesCostsOther expensesEarnings before interest and taxesInterest expenseTaxable incomeTaxes (25%)Net IncomeCROSBY, INCORPORATED2021 Income StatementDividendsAddition to retained earningsCurrent assetsCashAccounts receivableInventoryTotalFixed assetsNet plant and equipmentTotal assetsEFN$ 19,24049,760Assets$ 26,24035,76072,320CROSBY, INCORPORATEDBalance Sheet as of December 31, 2021$ 134,320$ 230,000$ 773,000629,00034,000$364,320$ 110,00018,000$ 92,00023,000$ 69,000Liabilities and Owners' EquityCurrent liabilitiesAccounts payableNotes payableTotalLong-term debtOwners' equityCommon stock and paid-In surplusRetained earningsTotalTotal liabilities and owners' equityWhat is the EFN If the firm wishes to keep its debt-equity ratio constant? (Do not roundIntermediate calculations and round your answer to the nearest whole number, e.g.,32.)$ 65,40020,600$ 86,000$ 121,000$120,00037,320$ 157,320$364,320

To maintain growth in sales and profit company needs to invest in fixed assets and current assets…

The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 30 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 (25%) CROSBY, INCORPORATED 2021 Income Statement Net Income $ 773,000 629,000 34,000 $ 110,000 18,000 $ 92,000 23,000 $ 69,000

The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 30 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 (25%) CROSBY, INCORPORATED 2021 Income Statement Net Income $ 773,000 629,000 34,000 $ 110,000 18,000 $ 92,000 23,000 $ 69,000

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

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The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 25 percent. 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. CROSBY, INCORPORATED 2020 Income Statement Sales $ 755,000 Costs 611,000 Other expenses 25,000 Earnings before interest and taxes $ 119,000 Interest paid 10,800 Taxable income $ 108,200 Taxes (22%) 23,804 Net income $ 84,396 Dividends $ 31,840 Addition to retained earnings 52,556 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 24,440 Accounts payable $ 58,200 Accounts receivable 33,780 Notes payable 15,200 Inventory 70,700 Total $ 73,400…
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. CROSBY, INCORPORATED 2021 Income Statement Sales $ 761,000 Costs 617,000 Other expenses 28,000 Earnings before interest and taxes $116,000 Interest expense 13, 200 Taxable income $ 102,800 Taxes (23%) 23,644 Net income $ 79, 156 Dividends $ 27,640 Addition to retained earnings 51, 516 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 25, 040 Accounts payable $ 60, 600 Accounts receivable 34, 440 Notes payable 17,000 Inventory 71, 240 Total $ 77,600 Total $ 130, 720 Long-term debt $ 109,000 Owners' equity Fixed assets Common stock and paid - in surplus $…
The most recent financial statements for Crosby. Inc., follow. Sales for 2018 are projected to grow by 30 percent. Interest expense will remain constant co ; the tax rate and the dividend payout rate will also remain other expenses, current assets, fixed assets, and accounts payable increase Costs, usly with sales. CROSBY, INC 2017 Income Statement Saies Costs Other expenses $765,000 621.000 30,000 Earnings before interest and taxes Interest paid s 114.000 4,800 Taxable income Taxes (22%) $ 99,200 21,824 Net income s 77,378 Dividends Addition to retained earnings 5 24.840 52,536 CROSBY. INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current sssets Current liabilities Cash Accounts receivable s 25,440 Accounts paysble s 62.200 34.880 Notes payable 18,200 S 80,400 s 113,000 Inventory 71.600 Total Total $ 131.920 Long-term debt Owners equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment $222.000 112.000 48.520 S…
The most recent financial statements for Crosby Incorporated, follow. Sales for 2021 are projected to grow by 30 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 increase spontaneously with sales. CROSBY, INCORPORATED 2020 Income Statement Sales 749,000 584,000 20,000 Costs Other expenses Earnings before interest and taxes $ 145,000 Interest paid 16,000 $ 129,000 Taxable income Taxes (21%) 27,090 Net income $ 101,910 Dividends $ 31,592 Addition to retained earnings 70,318 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners' Equity Current assets Current liabilities Accounts payable Notes payable $ 20,840 $ 55,000 14,200 Cash Accounts receivable 43,780 Inventory 93,960 Total $ 69,200 $ 158,580 Long-term debt $ 132,000 Total Fixed assets Owners' equity Common stock and paid-in surplus Net plant and equipment $ 425,000 $…
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 CROSBY, INCORPORATED 2021 Income Statement Earnings before interest and taxes Interest expense Taxable income Taxes (24%) Net income Dividends Addition to retained earnings $ 19,940 50,664 $772,000 628,000 33,500 $ 110,500 17,600 $ 92,900 22,296 $ 70,604
The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 30 percent. 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. CROSBY, INCORPORATED 2020 Income Statement Sales $ 749,000 Costs 584,000 Other expenses 20,000 Earnings before interest and taxes $ 145,000 Interest paid 16,000 Taxable income $ 129,000 Taxes (21%) 27,090 Net income $ 101,910 Dividends $ 31,592 Addition to retained earnings 70,318 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 20,840 Accounts payable $ 55,000 Accounts receivable 43,780 Notes payable 14,200 Inventory 93,960 Total $ 69,200…
The most recent financial statements for Crosby, Incorporated, follow. Sales for 2021 are projected to grow by 25 percent. 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. Sales Costs Other expenses CROSBY, INCORPORATED 2020 Income Statement Earnings before interest and taxes Interest paid Taxable income Taxes (24%) Net income Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total Total assets $ 23,440 50,584 Fixed assets Net plant and equipment $ 224,000 EFN $ 25,640 35,100 71,780 $ 132,520 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 767,000 623,000 31,000 $ 356,520 $ 113,000 15,600 $ 97,400 23.376 $ 74,024 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus…
The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 30 percent Interest expense will remain constant, the tax rate and the dividend payout rate will also remain cons sts, other expenses, current assets, and accounts payable increase spontaneously with sales. CROSBY, INC 2017 Income Statement Sales Costs Other expenses $749,000 584,000 20,000 Earnings before interest and taxes Interest paid $145,000 16,000 Taxable income Taxes (21%) $129,000 27,090 Net income $101,910 $31,592 Dividends Addition to retained earnings 70,318 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable 20,840 Accounts payable 43,780 Notes payable 55,000 14,200 $ 69,200 $132,000 Inventory 3,960 Total Total $ 158,580 Long-term debt Fixed assets Owners equity Net plant and equipment 425,000 Common stock and paid-in surplus $115,500 266,880 $382,380 s 583,580 Total…
The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 20 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 (21%) 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 $ 26,694 59,416 $ 21,840 44,780 103,960 $ 170,580 $435,000 $759,000 594,000 30,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets 605,580 $ 135,000 26,000 $ 109,000 22,890 $ 86,110 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in…
The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 30 percent. 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. CROSBY, INC. 2017 Income Statement $756,000 612,000 25,500 Sales Costs Other expenses Earnings before interest and taxes $ 118,500 Interest paid 11,200 $ 107,300 24,679 Taxable income Taxes (23%) Net income $ 82,621 Dividends $31,140 Addition to retained 51,481 earnings
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 (24%) Net income Dividends Addition to retained earnings CROSBY, INCORPORATED 2021 Income Statement Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets EFN $ 23,440 50,584 Assets $ 25,640 35,100 71,780 $ 132,520 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 $ 224,000 $ 767,000 623,000 31,000 $ 356,520 $ 113,000 15,600 $ 97,400 23.376 $ 74,024 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in…
Using the AFN formula in financial forecasting approach, Determine the following for Piano Co. given the following accounting information assuming that the firm’s profit margin remains constant and the company is at full capacity. · Sales this year is P6,000,000· Percentage increase projected for next year sales = 20%· Net income this year amounts to P600,000· Retention ratio = 50%· Accounts payable = P1,100,000· Notes payable = P180,000· Accrued expenses = P500,000· Projected excess funds available next year is determined to be P200,000 Questions: 1. Determine the spontaneous liabilities increase. 2. How much is the increase in Retained Earnings? 3. How much is the total assets?

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