Please use the financials for Dilworth Corp. to work the following:

1. Estimate the EFN for 2021, assuming a sales growth rate of 10%. Make sure to use ONLY the “Direct Method”, NOT the “Auto Calc” method.

2. Assume that the company has excess capacity as of the end of 2020, with a capacity utilization of 90%. Re-estimate EFN for 2021 (sales growth rate of

10%) given this excess capacity.

Note: Assume that the dividend payout ratio remains the same for 2021. Also, note that the numbers are all in thousands of dollars. You must use Excel to do

your work!

1. Estimate the EFN for 2021, assuming a sales growth rate of 10%. Make sure to use ONLY the “Direct Method”, NOT the “Auto Calc” method.

2. Assume that the company has excess capacity as of the end of 2020, with a capacity utilization of 90%. Re-estimate EFN for 2021 (sales growth rate of

10%) given this excess capacity.

Note: Assume that the dividend payout ratio remains the same for 2021. Also, note that the numbers are all in thousands of dollars. You must use Excel to do

your work!

Coursework related to EFN has been included. Use direct method and excess capacity. Do NOT use the auto calc method with highlighted interest. Use

formulas