The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2020 are projected to grow by 20%. 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.
MOOSE TOURS, INC. 2019
Income Statement
Sales $758,000
Costs 593,000
Other expenses 14,000
Earnings before interest and taxes $151,000
Interest expense 10,000
Taxable income $141,000
Taxes (40%) 56,400
Net income $84,600
Dividends $33,840
Addition to retained earnings 50,760
MOOSE TOURS, INC.
Balance Sheet as of December 31, 2019
Assets
Current assets Current liabilities
Cash $21,740
Accounts receivable 34,060
Inventory 71,020
Total $126,820
Fixed assets
Net plant and equipment $275,000
Total assets $401,820
Liabilities and Owners' Equity
Accounts payable $55,900
Notes payable 15,100
Total $71,000
Long-term debt $102,000
Owners' equity
Common stock and paid-in surplus $102,000
Retained earnings 126,820
Total $228,820
Total liabilities and owners' equity $401,820
What is the EFN if the firm was operating at only 80% of capacity in 2019? Assume that fixed assets are sold so that the company has a 100% asset utilization. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e. g., 32.)