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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. CROSBY, INCORPORATED 2021 Income Statement Sales Costs $750,000 585,000 Other expenses 21,000 Earnings before interest and taxes $144,000 Interest expense 17,000 $127,000 Taxable income Taxes (22%) Net income Dividends Addition to retained earnings $29,718 69,342 27,940 $ 99,060 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 20,940 43,880 Accounts payable Notes payable $ 55,100 14,300 Inventory 94,960 Total $ 69,400 Total $ 159,780 Long-term debt $ 133,000 Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings $116,000 267.380 Net income Dividends Addition to retained earnings $29,718 69,342 $ 99,060 Assets Current assets CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Liabilities and Owners' Equity Current liabilities Cash Accounts receivable $ 20,940 43.880 Accounts payable Notes payable Inventory 94,960 Total Total $159,780 Long-term debt Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings Total assets 585,780 Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) EFN $55,100 14,300 $ 69,400 $ 133,000 $116,000 267,380 $ 383,380 $585,780

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. CROSBY, INCORPORATED 2021 Income Statement Sales Costs $750,000 585,000 Other expenses 21,000 Earnings before interest and taxes $144,000 Interest expense 17,000 $127,000 Taxable income Taxes (22%) Net income Dividends Addition to retained earnings $29,718 69,342 27,940 $ 99,060 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 20,940 43,880 Accounts payable Notes payable $ 55,100 14,300 Inventory 94,960 Total $ 69,400 Total $ 159,780 Long-term debt $ 133,000 Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings $116,000 267.380 Net income Dividends Addition to retained earnings $29,718 69,342 $ 99,060 Assets Current assets CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Liabilities and Owners' Equity Current liabilities Cash Accounts receivable $ 20,940 43.880 Accounts payable Notes payable Inventory 94,960 Total Total $159,780 Long-term debt Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings Total assets 585,780 Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) EFN $55,100 14,300 $ 69,400 $ 133,000 $116,000 267,380 $ 383,380 $585,780

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 7P
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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. CROSBY, INCORPORATED 2021 Income Statement Sales $750,000 Costs 585,000 Other expenses 21,000 Earnings before interest and taxes $144,000 Interest expense 17,000 Taxable income $127,000 Taxes (22%) 27.940 Net income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 20,940 43.880 Accounts payable Notes payable $ 55,100 14,300 Inventory 94,960 Total $ 69,400 Total $ 159,780 Long-term debt $ 133,000 Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings $ 116,000 267,380 Net income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $20,940 43,880 Accounts payable Notes payable Inventory 94,960 Total Total $ 159,780 Long-term debt Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings $55,100 14.300 $ 69,400 $ 133,000 $116,000 267,380 Total assets 585,780 Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) $ 383,380 $585,780 EFN
Transcribed Image Text: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. CROSBY, INCORPORATED 2021 Income Statement Sales $750,000 Costs 585,000 Other expenses 21,000 Earnings before interest and taxes $144,000 Interest expense 17,000 Taxable income $127,000 Taxes (22%) 27.940 Net income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 20,940 43.880 Accounts payable Notes payable $ 55,100 14,300 Inventory 94,960 Total $ 69,400 Total $ 159,780 Long-term debt $ 133,000 Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings $ 116,000 267,380 Net income $ 99,060 Dividends $ 29,718 Addition to retained earnings 69,342 CROSBY, INCORPORATED Balance Sheet as of December 31, 2021 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $20,940 43,880 Accounts payable Notes payable Inventory 94,960 Total Total $ 159,780 Long-term debt Fixed assets Owners' equity Net plant and equipment $ 426,000 Common stock and paid-in surplus Retained earnings $55,100 14.300 $ 69,400 $ 133,000 $116,000 267,380 Total assets 585,780 Total Total liabilities and owners' equity If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 20 percent growth rate in sales? (Do not round Intermediate calculations and round your answer to the nearest whole number, e.g.. 32.) $ 383,380 $585,780 EFN
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