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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN C

Consider the following income statement for the Heir Jordan Corporation:

  

HEIR JORDAN CORPORATION
Income Statement
  Sales         $ 48,800  
  Costs           34,800  
               
  Taxable income         $ 14,000  
  Taxes (30%)           4,200  
               
  Net income         $ 9,800  
               
      Dividends $ 3,200          
      Addition to retained earnings   6,600          
 

  

The balance sheet for the Heir Jordan Corporation follows.

  

HEIR JORDAN CORPORATION
Balance Sheet
Assets   Liabilities and OwnersAc€?c Equity  
  Current assets         Current liabilities      
    Cash $ 2,650       Accounts payable $ 2,400  
    Accounts receivable   3,600       Notes payable   5,300  
               
    Inventory   9,000         Total $ 7,700  
               
      Total $ 15,250     Long-term debt $ 24,000  
          OwnersAc€?c equity      
  Fixed assets           Common stock and paid-in surplus $ 18,000  
    Net plant and equipment $ 38,400       Retained earnings   3,950  
               
              Total $ 21,950  
               
  Total assets $ 53,650     Total liabilities and ownersAc€?c equity $ 53,650  
               
 

   

Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

HEIR JORDAN CORPORATION
Pro Forma Balance Sheet
Assets   Liabilities and OwnersAc€?c Equity  
  Current assets         Current liabilities      
    Cash   $       Accounts payable   $  
    Accounts receivable           Notes payable      
               
    Inventory             Total   $  
               
      Total   $     Long-term debt   $  
          OwnersAc€?c equity      
  Fixed assets           Common stock and paid-in surplus      
    Net plant and equipment   $       Retained earnings      
               
              Total   $  
               
  Total assets   $     Total liabilities and ownersAc€?c equity   $  
               
 

Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Consider the following income statement for the Heir Jordan Corporation:

  

HEIR JORDAN CORPORATION
Income Statement
  Sales         $ 48,800  
  Costs           34,800  
               
  Taxable income         $ 14,000  
  Taxes (30%)           4,200  
               
  Net income         $ 9,800  
               
      Dividends $ 3,200          
      Addition to retained earnings   6,600          
 

  

The balance sheet for the Heir Jordan Corporation follows.

  

HEIR JORDAN CORPORATION
Balance Sheet
Assets   Liabilities and OwnersAc€?c Equity  
  Current assets         Current liabilities      
    Cash $ 2,650       Accounts payable $ 2,400  
    Accounts receivable   3,600       Notes payable   5,300  
               
    Inventory   9,000         Total $ 7,700  
               
      Total $ 15,250     Long-term debt $ 24,000  
          OwnersAc€?c equity      
  Fixed assets           Common stock and paid-in surplus $ 18,000  
    Net plant and equipment $ 38,400       Retained earnings   3,950  
               
              Total $ 21,950  
               
  Total assets $ 53,650     Total liabilities and ownersAc€?c equity $ 53,650  
               
 

   

Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

HEIR JORDAN CORPORATION
Pro Forma Balance Sheet
Assets   Liabilities and OwnersAc€?c Equity  
  Current assets         Current liabilities      
    Cash   $       Accounts payable   $  
    Accounts receivable           Notes payable      
               
    Inventory             Total   $  
               
      Total   $     Long-term debt   $  
          OwnersAc€?c equity      
  Fixed assets           Common stock and paid-in surplus      
    Net plant and equipment   $       Retained earnings      
               
              Total   $  
               
  Total assets   $     Total liabilities and ownersAc€?c equity   $  
               
 

Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Dec 03 2019 Read more Less More

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