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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Cost $49,000 40,300 Taxable income Taxes (2296) $ 8,700
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Cost $49,000 40,300 Taxable income Taxes (2296) $ 8,700 1,914 Net income $6,786 Dividends Addition to retained $2,400 4,386 earnings The balance sheet for the Heir Jordan Corporation follows HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 2,950 Accounts payable $ 2,400 4,100 Notes payable 5,400 $ 7,800 $28,000 Inventory 6,400Total Total $13,450 Long-term debt Owners' equity Common stock and paid-in surplus $15,000 3,950 $18,950 54,750 Fixed assets Net plant and equipment $ 41,300 Retained earnings Total Total liabilities and owners Total assets $54,750 equity Prepare a pro forma balance sheet, assuming a sales increase of 15 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 receivable Inventory Accounts payable Notes payable Total Long-term debt Owners' equity Total Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment Total Total assets Total liabilities and owners' equity
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