Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (21%) Net income Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Fixed assets Net plant and equipment Total assets Assets Current assets Cash Accounts receivable Inventory Total Fixed assets $2,509 4,601 Total assets Net plant and equipment $2,250 5,100 8,000 $36,800 $42,900 33,900 $ 52,150 $ 9,000 1,890 Assets $ 7,110 Liabilities and Owners' Equity $15,350 Long-term debt Owners' equity Common stock and paid-in surplus Current liabilities Accounts payable Notes payable Total Retained earnings Total Total liabilities and owners' equity Prepare a pro forma balance sheet, assuming an increase in sales of 14 percent, 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.) Current liabilities $ 4,000 8,000 $ 12,000 Accounts payable Notes payable Total Long-term debt Owners' equity $22,000 $ 10,000 HEIR JORDAN CORPORATION Pro Forma Balance Sheet 8,150 $ 18,150 $ 52,150 Liabilities and Owners' Equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (21%) Net income Dividends Addition to retained earnings Current assets Cash Accounts receivable Inventory Total The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Fixed assets Net plant and equipment Total assets Assets Current assets Cash Accounts receivable Inventory Total Fixed assets $2,509 4,601 Total assets Net plant and equipment $2,250 5,100 8,000 $36,800 $42,900 33,900 $ 52,150 $ 9,000 1,890 Assets $ 7,110 Liabilities and Owners' Equity $15,350 Long-term debt Owners' equity Common stock and paid-in surplus Current liabilities Accounts payable Notes payable Total Retained earnings Total Total liabilities and owners' equity Prepare a pro forma balance sheet, assuming an increase in sales of 14 percent, 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.) Current liabilities $ 4,000 8,000 $ 12,000 Accounts payable Notes payable Total Long-term debt Owners' equity $22,000 $ 10,000 HEIR JORDAN CORPORATION Pro Forma Balance Sheet 8,150 $ 18,150 $ 52,150 Liabilities and Owners' Equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
Costs
Taxable income
Taxes (21%)
Net income
Dividends
Addition to retained
earnings
Current assets
Cash
Accounts receivable
Inventory
Total
The balance sheet for the Heir Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets
Fixed assets
Net plant and
equipment
Total assets
Current assets
Cash
Accounts receivable
Inventory
Total
$2,509
4,601
Total assets
Fixed assets
Net plant and equipment
$ 2,250
5,100
8,000
$36,800
$42,900
33,900
$ 52,150
$ 9,000
1,890
Assets
$ 7,110
Liabilities and Owners' Equity
$ 15,350 Long-term debt
Owners' equity
Common stock and paid-in
surplus
Current liabilities
Accounts payable
Notes payable
Total
Retained earnings
Total
Total liabilities and owners'
equity
$ 4,000
8,000
Prepare a pro forma balance sheet, assuming an increase in sales of 14 percent, 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.)
I
Current liabilities
$ 12,000
$22,000
Accounts payable
Notes payable
Total
Long-term debt
Owners' equity
$ 10,000
8,150
$ 18,150
$ 52,150
HEIR JORDAN CORPORATION
Pro Forma Balance Sheet
Liabilities and Owners' Equity
Common stock and paid-in surplus
Retained earnings
Total
Total liabilities and owners' equity
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