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The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow...

The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 20 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.
CROSBY, INC.
2017 Income Statement
Sales $ 980,760
Costs 792,960
Other expenses 20,060
Earnings before interest and taxes $ 167,740
Interest paid 14,740
Taxable income $ 153,000
Taxes (21%) 32,130
Net income $ 120,870
Dividends $ 39,250
Addition to retained earnings 81,620
CROSBY, INC.
Balance Sheet as of December 31, 2017
Assets Liabilities and Owners’ Equity
Current assets Current liabilities
   Cash $ 27,920     Accounts payable $ 71,720
   Accounts receivable 42,630     Notes payable 17,620
   Inventory 95,910      Total $ 89,340
     Total $ 166,460 Long-term debt $ 170,000
Fixed assets Owners’ equity
   Net plant and equipment $ 455,980      Common stock and paid-in surplus $ 140,000
   
    Retained earnings 223,100
     Total $ 363,100
Total assets $ 622,440 Total liabilities and owners’ equity $ 622,440
What is the EFN if the firm was operating at only 80 percent of capacity in 2017? Assume that fixed assets are sold so that the company has a 100 percent asset utilization

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