Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $42,000 33,000 Taxable income Taxes (21%) $9,000 1,890
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $42,000 33,000 Taxable income Taxes (21%) $9,000 1,890 Net income $ 7,110 Dividends Addition to retained $2,500 4,610 earnings The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "O" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Percentage of Sales Assets Liabilities and Owners' Equity Current liabilities Current assets Cash Accounts receivable Inventory 3,000 4,200 6,400 $13,600 2,400 4,000 Accounts payable Notes payable 2,784.00 Total Long-term debt Owners' equity 6,400 28,000 Total Fixed assets Net plant and equipment $35,000 Common stock and paid-in surplus Retained earnings 10,000 4,200 14,200 48,600 Total Total assets $48,600 Total liabilities and owners' equity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started