The most recent financial statements for Crosby, Inc., follow. Sales for 2018 are projected to grow by 25 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 $ 751,000 Costs 586,000 Other expenses 22,000 Earnings before interest and taxes $ 143,000 Interest paid 18,000 Taxable income $ 125,000 Taxes (23%) 28,750 Net income $ 96,250 Dividends $ 29,838 Addition to retained earnings 66,412 CROSBY, INC. Balance Sheet as of December 31, 2017 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 21,040 Accounts payable $ 55,200 Accounts receivable 43,980 Notes payable 14,400 Inventory 95,960 Total $ 69,600 Total $ 160,980 Long-term debt $ 134,000 Fixed assets Owners’ equity Net plant and equipment $ 427,000 Common stock and paid-in surplus $ 116,500 Retained earnings 267,880 Total $ 384,380 Total assets $ 587,980 Total liabilities and owners’ equity $ 587,980 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.)