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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. Sales Costs Other expenses CROSBY, INCORPORATED 2020 Income Statement Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net income Dividends $31,185 Addition to retained earnings 72,765 Current assets Cash Accounts receivable Inventory Total Total assets $20,540 43,480 90,960 $154,980 Fixed assets Net plant and equipment $422,000 $ 746,000 581,000 17,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 576,980 $ 148,000 13,000 $ 135,000 31,050 $ 103,950 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity $54,700 13,900 $68,600 $ 129,000 $ 114,000 265,380 $ 379,380 $ 576,980 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 30 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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. Sales Costs Other expenses CROSBY, INCORPORATED 2020 Income Statement Earnings before interest and taxes Interest paid Taxable income Taxes (23%) Net income Dividends $31,185 Addition to retained earnings 72,765 Current assets Cash Accounts receivable Inventory Total Total assets $20,540 43,480 90,960 $154,980 Fixed assets Net plant and equipment $422,000 $ 746,000 581,000 17,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 576,980 $ 148,000 13,000 $ 135,000 31,050 $ 103,950 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity $54,700 13,900 $68,600 $ 129,000 $ 114,000 265,380 $ 379,380 $ 576,980 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 30 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
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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. Sales Costs Other expenses Earnings before interest and taxes Interest paid CROSBY, INCORPORATED 2020 Income Statement Taxable income Taxes (23%) Net income Dividends Addition to retained earnings Inventory Total Current assets Cash Accounts receivable Total assets $ 31,185 72,765 $20,540 43,480 90,960 $154,980 Fixed assets Net plant and equipment $ 422,000 $ 746,000 581,000 17,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 576,980 $ 148,000 13,000 $ 135,000 31,050 103,950 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity $ 54,700 13,900 $ 68,600 $ 129,000 $ 114,000 265,380 $ 379,380 $ 576,980 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 30 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
Transcribed Image Text: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. Sales Costs Other expenses Earnings before interest and taxes Interest paid CROSBY, INCORPORATED 2020 Income Statement Taxable income Taxes (23%) Net income Dividends Addition to retained earnings Inventory Total Current assets Cash Accounts receivable Total assets $ 31,185 72,765 $20,540 43,480 90,960 $154,980 Fixed assets Net plant and equipment $ 422,000 $ 746,000 581,000 17,000 CROSBY, INCORPORATED Balance Sheet as of December 31, 2020 Assets $ 576,980 $ 148,000 13,000 $ 135,000 31,050 103,950 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity $ 54,700 13,900 $ 68,600 $ 129,000 $ 114,000 265,380 $ 379,380 $ 576,980 If the firm is operating at full capacity and no new debt or equity is issued, what external financing is needed to support the 30 percent growth rate in sales? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
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