Home / Questions / 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.)
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