CShsiger-ne tolowing income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Staternent Sales $48,800 34,800 Costs Taxable income Taxes (22%) Net income $14,000 3,080 $10,920 Dividends Addition to retained earnings 8,403 $ 2,517 The balance sheet for the Heir Jordan Corporation follows HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Cash Accounts receivable Current liabilities 2,650 Accounts payable $ 2,400 3,600 Notes payable 5,300 $ 7,700 24,000 Common stock and paid-in surplus 18,000 Inventory 9,000 Total Total s 15,250 Long-term debt Owners' equity Fixed assets Net plant and equipment 38,400 Retained earnings 3,950 $ 21,950 53,650 Total liabilities and owners' equity 53,50 Total Total assets Prepare a pro forma balance sheet assuming an increase in sales of 12 percent, no new external debt and a constant payout ratio (Do not round intermediate calculations and round you answers to 2 decimal places, e.g., 32.16.)

Question
CShsiger-ne
tolowing income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Staternent
Sales
$48,800
34,800
Costs
Taxable income
Taxes (22%)
Net income
$14,000
3,080
$10,920
Dividends
Addition to retained earnings 8,403
$ 2,517
The balance sheet for the Heir Jordan Corporation follows
HEIR JORDAN CORPORATION
Balance Sheet
Assets
Liabilities and Owners' Equity
Current assets
Cash
Accounts receivable
Current liabilities
2,650 Accounts payable
$ 2,400
3,600 Notes payable
5,300
$ 7,700
24,000
Common stock and paid-in surplus 18,000
Inventory
9,000 Total
Total
s 15,250 Long-term debt
Owners' equity
Fixed assets
Net plant and equipment
38,400
Retained earnings
3,950
$ 21,950
53,650 Total liabilities and owners' equity 53,50
Total
Total assets
Prepare a pro forma balance sheet assuming an increase in sales of 12 percent, no new external debt
and a constant payout ratio (Do not round intermediate calculations and round you
answers to 2 decimal places, e.g., 32.16.)
Expand
Transcribed Image Text

CShsiger-ne tolowing income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Staternent Sales $48,800 34,800 Costs Taxable income Taxes (22%) Net income $14,000 3,080 $10,920 Dividends Addition to retained earnings 8,403 $ 2,517 The balance sheet for the Heir Jordan Corporation follows HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Cash Accounts receivable Current liabilities 2,650 Accounts payable $ 2,400 3,600 Notes payable 5,300 $ 7,700 24,000 Common stock and paid-in surplus 18,000 Inventory 9,000 Total Total s 15,250 Long-term debt Owners' equity Fixed assets Net plant and equipment 38,400 Retained earnings 3,950 $ 21,950 53,650 Total liabilities and owners' equity 53,50 Total Total assets Prepare a pro forma balance sheet assuming an increase in sales of 12 percent, no new external debt and a constant payout ratio (Do not round intermediate calculations and round you answers to 2 decimal places, e.g., 32.16.)

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