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The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 percent. Interest e
CROSBY, INC Balance Sheet as of December 31, 2017 Assets Liabilities and Owners Equity Current assets Current liabilities Ca
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Answer #1

Answer:

EFN $            43,682.50

Working:

EFN[Change in total asset-Change in accounts payable-addition of retained earnings] (581380*25%)-(54900*25%)-87937.5
Calculation of Retained Earnings
Sales $         935,000.00
Costs $         728,750.00
Other expenses $            23,750.00
Earnings before interest and taxes $         182,500.00
Interest paid $            15,000.00
Taxable Income $         167,500.00
Taxes [25%] $            41,875.00
Net Income $         125,625.00
Dividends [30%] $            37,687.50
Addition to retained Earnings $            87,937.50
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