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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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
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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