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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

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.1E
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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
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
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