Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) $ 48,000 37,400 $ 10,600 2,332 Net income $ 8,268 Dividends Addition to retained earnings $ 3,100 5,168 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. Note: Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16. HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 3,140 Accounts payable Accounts receivable 4,200 Notes payable $ 2,600 5,700 Inventory 6,500 Total current assets $ 13,840 Total current liabilities Long-term debt $ 8,300 $ 28,000 Owners' equity Fixed assets Net plant and equipment $ 43,200 Common stock and paid-in surplus $ 5,000 Retained earnings 15,740 Total owners' equity $ 20,740 Total assets $ 57,040 Total liabilities and owners' equity $ 57,040 Percentage of Sales
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs Taxable income Taxes (22%) $ 48,000 37,400 $ 10,600 2,332 Net income $ 8,268 Dividends Addition to retained earnings $ 3,100 5,168 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. Note: Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16. HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 3,140 Accounts payable Accounts receivable 4,200 Notes payable $ 2,600 5,700 Inventory 6,500 Total current assets $ 13,840 Total current liabilities Long-term debt $ 8,300 $ 28,000 Owners' equity Fixed assets Net plant and equipment $ 43,200 Common stock and paid-in surplus $ 5,000 Retained earnings 15,740 Total owners' equity $ 20,740 Total assets $ 57,040 Total liabilities and owners' equity $ 57,040 Percentage of Sales
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 40E: Cuneo Companys income statements for the last 3 years are as follows: Refer to the information for...
Related questions
Question
Transcribed Image Text:Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales
Costs
Taxable income
Taxes (22%)
$ 48,000
37,400
$ 10,600
2,332
Net income
$ 8,268
Dividends
Addition to retained earnings
$ 3,100
5,168
The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing
information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not.
Note: Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as
a percent rounded 2 decimal places, e.g., 32.16.
HEIR JORDAN CORPORATION
Balance Sheet
Percentage
of Sales
Assets
Liabilities and Owners' Equity
Current assets
Current liabilities
Cash
$
3,140
Accounts payable
Accounts receivable
4,200
Notes payable
$
2,600
5,700
Inventory
6,500
Total current assets
$
13,840
Total current liabilities
Long-term debt
$
8,300
$
28,000
Owners' equity
Fixed assets
Net plant and equipment
$
43,200
Common stock and paid-in surplus
$
5,000
Retained earnings
15,740
Total owners' equity
$
20,740
Total assets
$
57,040
Total liabilities and owners' equity
$
57,040
Percentage
of Sales
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub