Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION

Income Statement Sales $ 46,500 Costs 36,100

Taxable income $ 10,400

Taxes (30%) 3,120

Net income $ 7,280

Dividends $ 3,100

Addition to retained earnings 4,180

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners Equity Current assets Current liabilities

Cash $ 2,600

Accounts payable $ 2,400

Accounts receivable 3,700

Notes payable 5,200

Inventory 9,000

Total $ 7,600

Total $ 15,300

Long-term debt $ 24,000

Owners equity Fixed assets Common stock and paid-in surplus $ 17,000

Net plant and equipment $ 38,200

Retained earnings 4,900

Total $ 21,900

Total assets $ 53,500

Total liabilities and owners equity $ 53,500

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 $