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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $45,000 35,000 Costs Taxable income $ 10,000 Taxes (22%)

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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $45,000 35,000 Costs 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 Accounts receivable 4,300 Notes payable Inventory 6,400 Total Total $ 13,750 Long-term debt Owners' equity Common stock and paid-in Fixed assets surplus $35,200 Retained earnings Total Net plant and equipment Liabilities and Owners' Equity $ 2,400 4,100 $ 6,500 $28,000 $ 11,000 3,450 $14.450 Common stock and paid-in $ 11,000 surplus Fixed assets Net plant and equipment $35,200 Retained earnings 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.) Answer is not complete. HEIR JORDAN CORPORATION Pro Forma Balance Sheet Assets Current liabilities Current assets Cash Accounts payable 5,650.00 Notes payable 9,040.00 Total 17.176.00 Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings 41,358.00 X Total 58,534.00 Total liabilities and owners' equity Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets $ $ $ Liabilities and Owners' Equity $ $ $ S $ S 4,520.00 5,100.00 9,620.00 22,000.00 18,000.00 12,205.56 X 30,205.56 * 61,800.00 Assets Answer is not complete. $ HEIR JORDAN CORPORATION Pro Forma Balance Sheet Current liabilities Liabilities and Owners' Equity $ Current assets Cash Accounts payable Accounts receivable 5,650.00 Notes payable Inventory 9,040.00 Total Total 17.176.00 Long-term debt Owners' equity Fixed assets Common stock and paid-in surplus Retained earnings Net plant and equipment 41,358.00 Total Total assets $ 58,534.00 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.) Answer is complete but not entirely correct. EFN -3.291.56 55 $ S 4,520.00 5,100.00 9,620.00 22,000.00 18,000.00 12,205.56 30,205.56 X 61,800.00

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