1. Below are the balance sheet and income statement for Heir Jordan Corporation. Based on the statements, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales. Notes payable, total current liabilities, long-term debt, and all equity accounts do not vary directly with sales. Put "n/a" where applicable. HEIR JORDAN CORPORATION Balance Sheet Assets $ % of Sales Liabilities and Owners' Equity % of Sales $ Current Assets Current liabilities Cash $3,140 Accounts payable $2,600 Accounts receivable 4,200 Notes payable 5,700 Inventory 6,500 Total $13,840 Total $8,300 Fixed assets Long-term debt $28,000 Net plant & Owners' Equity equipment $43,200 Common stock & $5,000 paid-in surplus Retained earnings 15,740 Total $20,740 Total liabilities & Total assets $57,040 owners' equity $57,040 HEIR JORDAN CORPORATION Income Statement age T Sales Costs Taxable income Taxes (22%) Net income Dividends Addition to retained earnings $53,000 40,900 $12,100 2,662 $9.438 $3,500 $5,938 2. Using information from the previous question, prepare a pro forma income statement and a pro forma balance sheet showing EFN, assuming an increase in sales of 15%, no new external debt or equity financing, and a constant payout ratio.