1. Below are the balance sheet and income statement for Heir Jordan Corporation. Based on the statements, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales. Notes payable, total current liabilities, long-term debt, and all equity accounts do not vary directly with sales. Put "n/a" where applicable. Current Assets Cash Accounts receivable Inventory Total Fixed assets Net plant & equipment Assets Total assets HEIR JORDAN CORPORATION Balance Sheet $ $3,140 4,200 6,500 $13,840 $43,200 $57,040 % of Sales Liabilities and Owners' Equity $ Current liabilities Accounts payable Notes payable Total Long-term debt Owners' Equity Common stock & paid-in surplus Retained earnings Total Total liabilities & owners' equity $2,600 5,700 $8,300 $28,000 $5,000 15,740 $20,740 $57,040 % of Sales
1. Below are the balance sheet and income statement for Heir Jordan Corporation. Based on the statements, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales. Notes payable, total current liabilities, long-term debt, and all equity accounts do not vary directly with sales. Put "n/a" where applicable. Current Assets Cash Accounts receivable Inventory Total Fixed assets Net plant & equipment Assets Total assets HEIR JORDAN CORPORATION Balance Sheet $ $3,140 4,200 6,500 $13,840 $43,200 $57,040 % of Sales Liabilities and Owners' Equity $ Current liabilities Accounts payable Notes payable Total Long-term debt Owners' Equity Common stock & paid-in surplus Retained earnings Total Total liabilities & owners' equity $2,600 5,700 $8,300 $28,000 $5,000 15,740 $20,740 $57,040 % of Sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please don't give solution in an image thanks
![Sales
Costs
HEIR JORDAN CORPORATION
Income Statement
Taxable income
Taxes (22%)
Net income
Dividends
Addition to retained earnings
$53,000
40,900
$12,100
2,662
$9.438
$3,500
$5,938
age
2. Using information from the previous question, prepare a pro forma income statement and a
pro forma balance sheet showing EFN, assuming an increase in sales of 15%, no new external
debt or equity financing, and a constant payout ratio.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdbead96-3503-4bf3-bb90-f78e8f640ada%2F09cbb420-2bd8-4099-8c18-a05add8959e7%2Fkxvl6m8.jpeg&w=3840&q=75)
Transcribed Image Text:Sales
Costs
HEIR JORDAN CORPORATION
Income Statement
Taxable income
Taxes (22%)
Net income
Dividends
Addition to retained earnings
$53,000
40,900
$12,100
2,662
$9.438
$3,500
$5,938
age
2. Using information from the previous question, prepare a pro forma income statement and a
pro forma balance sheet showing EFN, assuming an increase in sales of 15%, no new external
debt or equity financing, and a constant payout ratio.
![1. Below are the balance sheet and income statement for Heir Jordan Corporation. Based on the
statements, supply the missing information using the percentage of sales approach. Assume that
accounts payable vary with sales. Notes payable, total current liabilities, long-term debt, and all
equity accounts do not vary directly with sales. Put "n/a" where applicable.
Current Assets
Cash
Accounts receivable
Inventory
Total
Fixed assets
Net plant &
equipment
Assets
Total assets
HEIR JORDAN CORPORATION
Balance Sheet
$
$3,140
4,200
6,500
$13,840
$43,200
$57,040
% of Sales
Liabilities and Owners' Equity
$
Current liabilities
Accounts payable
Notes payable
Total
Long-term debt
Owners' Equity
Common stock & $5,000
paid-in surplus
Retained earnings
Total
$2,600
5,700
Total liabilities &
owners' equity
$8,300
$28,000
15,740
$20,740
$57,040
% of Sales](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcdbead96-3503-4bf3-bb90-f78e8f640ada%2F09cbb420-2bd8-4099-8c18-a05add8959e7%2Fb709cmt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Below are the balance sheet and income statement for Heir Jordan Corporation. Based on the
statements, supply the missing information using the percentage of sales approach. Assume that
accounts payable vary with sales. Notes payable, total current liabilities, long-term debt, and all
equity accounts do not vary directly with sales. Put "n/a" where applicable.
Current Assets
Cash
Accounts receivable
Inventory
Total
Fixed assets
Net plant &
equipment
Assets
Total assets
HEIR JORDAN CORPORATION
Balance Sheet
$
$3,140
4,200
6,500
$13,840
$43,200
$57,040
% of Sales
Liabilities and Owners' Equity
$
Current liabilities
Accounts payable
Notes payable
Total
Long-term debt
Owners' Equity
Common stock & $5,000
paid-in surplus
Retained earnings
Total
$2,600
5,700
Total liabilities &
owners' equity
$8,300
$28,000
15,740
$20,740
$57,040
% of Sales
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