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.

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...

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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 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.

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