Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $45,000 35,000 Taxable income $10,000 Taxes (22%) 2,200 Net income $ 7,800 Dividends $2,501 Addition to retained 5,299 earnings The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Current assets Current liabilities Cash $ 3,050 Accounts payable Notes payable Accounts receivable 4,300 Inventory 6,400 Total Total $ 13,750 Long-term debt Owners' equity Common stock and paid-in Fixed assets surplus Net plant and equipment $35,200 Retained earnings Total Total assets $48,950 Total liabilities and owners' equity Liabilities and Owners' Equity $ 2,400 4,100 $ 6,500 $28,000 $ 11,000 3,450 $ 14,450 $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.) HEIR JORDAN CORPORATION Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts payable Accounts receivable Notes payable Inventory Total Total Long-term debt Owners' equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment Total Total assets Total liabilities and owners' equity 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 Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $45,000 35,000 Taxable income $10,000 Taxes (22%) 2,200 Net income $ 7,800 Dividends $2,501 Addition to retained 5,299 earnings The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Current assets Current liabilities Cash $ 3,050 Accounts payable Notes payable Accounts receivable 4,300 Inventory 6,400 Total Total $ 13,750 Long-term debt Owners' equity Common stock and paid-in Fixed assets surplus Net plant and equipment $35,200 Retained earnings Total Total assets $48,950 Total liabilities and owners' equity Liabilities and Owners' Equity $ 2,400 4,100 $ 6,500 $28,000 $ 11,000 3,450 $ 14,450 $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.) HEIR JORDAN CORPORATION Pro Forma Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts payable Accounts receivable Notes payable Inventory Total Total Long-term debt Owners' equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment Total Total assets Total liabilities and owners' equity 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
