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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, and accounts payable increase spontaneously with sales.

CROSBY, INC. 2017 Income Statement

  Sales

$

755,000

  Costs

590,000

  Other expenses

26,000

  Earnings before interest and taxes

$

139,000

  Interest paid

22,000

  Taxable income

$

117,000

  Taxes (22%)

25,740

  Net income

$

91,260

  Dividends

$

28,291

  Addition to retained earnings

62,969

CROSBY, INC. Balance Sheet as of December 31, 2017

Assets

Liabilities and Owners’ Equity

  Current assets

  Current liabilities

    Cash

$

21,440

    Accounts payable

$

55,600

    Accounts receivable

44,380

    Notes payable

14,800

    Inventory

99,960

      Total

$

70,400

      Total

$

165,780

  Long-term debt

$

138,000

  Fixed assets

  Owners’ equity

    Net plant and equipment

$

431,000

    Common stock and paid-in surplus

$

118,500

    Retained earnings

269,880

      Total

$

388,380

  Total assets

$

596,780

  Total liabilities and owners’ equity

$

596,780

In 2017, the firm operated at 80 percent of capacity. Construct the pro forma income statement and balance sheet for the company. Assume that fixed assets are sold so that the company has a 100 percent asset utilization. (Do not round intermediate calculations.)