Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales				$	43,800
Costs					34,800
Taxable income				$	9,000
Taxes (35%)					3,150
Net income				$	5,850
Dividends	$	3,300
Addition to retained earnings		2,550

The projected sales growth rate is 12 percent.

Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all amounts as positive values. Do not round intermediate calculations.)

HEIR JORDAN CORPORATION Pro Forma Income Statement

Sales

$

Costs

Taxable income

$

Taxes

Net income

$

Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales					$	42,000
Costs						33,000
Taxable income					$	9,000
Taxes (30%)						2,700
Net income					$	6,300
Dividends	$	1,500
Addition to retained earnings		4,800

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION Balance Sheet
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$	3,000		Accounts payable	$	2,400
Accounts receivable		4,200		Notes payable		4,000
Inventory		6,400		Total	$	6,400
Total	$	13,600		Long-term debt	$	28,000
				Owners equity
Fixed assets				Common stock and paid-in surplus	$	10,000
Net plant and equipment	$	35,000		Retained earnings		4,200
				Total	$	14,200
Total assets	$	48,600		Total liabilities and owners equity	$	48,600

Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, 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
Net plant and equipment		$		Retained earnings
				Total		$
Total assets		$		Total liabilities and owners equity		$

Calculate the EFN. (Negative amount 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

$