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12 Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement $45,000 35,000 0.25 points Sales Costs Taxable income Taxes

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12 Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement $45,000 35,000 0.25 points Sales Costs Taxable income Taxes (22%) $ 10,000 2,200 eBook Print Net income $ 7,800 References Dividends Addition to retained earnings $ 2,501 5,299 The balance sheet for the Heir Jordan Corporation follows. Assets Current assets Cash Accounts receivable HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Current liabilities $ 3,050 Accounts payable $ 2,400 4,300 Notes payable 4,100 Inventory 6,400 Total $ 6,500 Total $ 13,750 Long-term debt $28,000 Mc IG Saved Saved 2. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 3,050 Accounts payable $ 2,400 Accounts receivable 4,300 Notes payable 4,100 Book Inventory 6,400 Total $ 6,500 Print Total $ 13,750 Long-term debt $28,000 erences Fixed assets Owners' equity Common stock and paid-in surplus Retained earnings $ 11,000 Net plant and equipment $35,200 3,450 Total $ 14,450 Total assets $ 48,950 Total liabilities and owners' equity $ 48,950 Prepare a pro forma balance sheet, assuming an increase in sales of 10 percent, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Assets Current assets Cash Accounts receivable Inventory Total HEIR JORDAN CORPORATION Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity Fixed assets Net plant and equipment Total assets Calculate the EFN. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) EFN

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