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The most recent financial statements for Scott, Inc., 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. SCOTT, INC. 2019 Income Statement Sales $ 771,000 Costs 627,000 Other expenses 33,000 Earnings before interest and taxes $ 111,000 Interest expense 17,200 Taxable income $ 93,800 Taxes (23%) 21,574 Net income $ 72,226 Dividends Addition to retained earnings $32,340 39,886 SCOTT, INC. Balance Sheet as of December 31, 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 26,040 Accounts payable $ 64,600 Accounts receivable 35,540 Notes payable 20,000 Inventory 72,140 Total $ 84,600 Total $ 133,720 Long-term debt $ 119,000 Owners' equity Fixed assets Common stock and paid-in $ 114,000 surplus Net plant and equipment $228,000 44,120 Retained earnings Total $ 158,120 Total assets $ 361,720 Total liabilities and owners' equity $361,720 Complete the pro forma income statements below. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Pro Forma Income Statement 15% Sales Growth 20% Sales Growth 45% Sales Growth Sales Costs Other expenses EBIT Interest expense Taxable income Taxes (23%) Net income Dividends Add to RE Calculate the EFN for 15, 20 and 45 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 dollar amount.) 15% 20% 45% EFN

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