Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 42,900 Costs 33,900 Taxable income $ 9,000 Taxes (21%) 1,890 Net income $ 7,110 Dividends $ 3,400 Addition to retained earnings 3,710 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. (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 Percentage of Sales Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $2,250 Accounts payable $4,000 9.32 Accounts receivable 5,100 Notes payable 8,000 0 Inventory 8,000 Total $15,350 Total $12,000 0 Long-term debt $22,000 0 Fixed assets Owners’ equity Net plant and equipment $36,800 Common stock and paid-in surplus $10,000 0 Retained earnings 8,150 0 Total $18,150 0 Total assets $52,150 Total liabilities and owners’ equity $52,150 0 2 decimal places required.
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATIONIncome Statement Sales $ 42,900 Costs 33,900 Taxable income $ 9,000 Taxes (21%) 1,890 Net income $ 7,110 Dividends $ 3,400 Addition to retained earnings 3,710 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. (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 Percentage of Sales Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $2,250 Accounts payable $4,000 9.32 Accounts receivable 5,100 Notes payable 8,000 0 Inventory 8,000 Total $15,350 Total $12,000 0 Long-term debt $22,000 0 Fixed assets Owners’ equity Net plant and equipment $36,800 Common stock and paid-in surplus $10,000 0 Retained earnings 8,150 0 Total $18,150 0 Total assets $52,150 Total liabilities and owners’ equity $52,150 0 2 decimal places required.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
| Consider the following income statement for the Heir Jordan Corporation: |
| HEIR JORDAN CORPORATION Income Statement |
|||||||
| Sales | $ | 42,900 | |||||
| Costs | 33,900 | ||||||
| Taxable income | $ | 9,000 | |||||
| Taxes (21%) | 1,890 | ||||||
| Net income | $ | 7,110 | |||||
| Dividends | $ | 3,400 | |||||
| Addition to |
3,710 | ||||||
|
The |
| HEIR JORDAN CORPORATION | |||||
| Balance Sheet | |||||
| Percentage of Sales | Percentage of Sales | ||||
| Assets | Liabilities and Owners’ Equity | ||||
| Current assets | Current liabilities | ||||
| Cash | $2,250 | Accounts payable | $4,000 | 9.32 | |
| Accounts receivable | 5,100 | Notes payable | 8,000 | 0 | |
| Inventory | 8,000 | ||||
| Total | $15,350 | Total | $12,000 | 0 | |
| Long-term debt | $22,000 | 0 | |||
| Fixed assets | Owners’ equity | ||||
| Net plant and equipment | $36,800 | Common stock and paid-in surplus | $10,000 | 0 | |
| Retained earnings | 8,150 | 0 | |||
| Total | $18,150 | 0 | |||
| Total assets | $52,150 | Total liabilities and owners’ equity | $52,150 | 0 |
2 decimal places required.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education