Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 47,600 Costs 35,600 Taxable income $ 12,000 Taxes (25%) 3,000 Net income $ 9,000 Dividends $ 3,000 Addition to retained earnings 6,000 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 $2,050 Accounts payable $2,400 Accounts receivable 4,700 Notes payable 4,500 Inventory 6,400 Total $13,150 Total $6,900 Long-term debt $25,000 Fixed assets Owners’ equity Net plant and equipment $36,000 Common stock and paid-in surplus $15,000 Retained earnings 2,250 Total $17,250 Total assets $49,150 Total liabilities and owners’ equity $49,150
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 47,600 Costs 35,600 Taxable income $ 12,000 Taxes (25%) 3,000 Net income $ 9,000 Dividends $ 3,000 Addition to retained earnings 6,000 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 $2,050 Accounts payable $2,400 Accounts receivable 4,700 Notes payable 4,500 Inventory 6,400 Total $13,150 Total $6,900 Long-term debt $25,000 Fixed assets Owners’ equity Net plant and equipment $36,000 Common stock and paid-in surplus $15,000 Retained earnings 2,250 Total $17,250 Total assets $49,150 Total liabilities and owners’ equity $49,150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Consider the following income statement for the Heir Jordan Corporation: |
HEIR JORDAN CORPORATION Income Statement |
|||||||
Sales | $ | 47,600 | |||||
Costs | 35,600 | ||||||
Taxable income | $ | 12,000 | |||||
Taxes (25%) | 3,000 | ||||||
Net income | $ | 9,000 | |||||
Dividends | $ | 3,000 | |||||
Addition to |
6,000 | ||||||
The |
|
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