Question
Consider the following income statement for the Heir Jordan Corporation. Heir Jordan CoportationIncome Statement Sales $47, 000 Cost $31, 300 Taxable Income $ 15, 700
Consider the following income statement for the Heir Jordan Corporation.
Heir Jordan CoportationIncome Statement
Sales$47, 000
Cost$31, 300
Taxable Income$ 15, 700
Taxes(35%)5,495
Net Income $10, 205
Dividends $2,500
Addition to retained earnings $7, 705
Heir Jordan Corporation Balance Sheet
Assets
Current Assets
Cash $2950
Accounts Receivable 4,100
Inventory6,400
Total $13,450
Fixed Assets
Net Plant and equipment$41,300
Total assets$54,750
Liabilities and Owners' Equity
Current Liabilities
Account Payable $2400-
Notes Payable$5,400
Total$7,800
Long-term debt$28,000-
Owners Equity
Common Stock & paid surplus$15,000
Retained earnings$3,950
Total$18, 950
Total Liabilities & owners' Equity $54,7450
Prepare an Pro Forma Balance Sheet, assuming a 15 percent increase in sales, no new external debt or equity financing, and a constant payout ratio.
Heir Jordan Corporation Pro Forma Balance Sheet
Assets
Current Assets
Cash $
Accounts Receivable $
Inventory$
Total $
Fixed Assets
Net Plant and equipment$
Total assets $
Liabilities and Owners' Equity
Current Liabilities
Account Payable $
Notes Payable$
Total$
Long-term debt$
Owners Equity
Common Stock & paid surplus$
Retained earnings$
Total $
Total Liabilities & owners' Equity $
Prepare an Pro Forma Balance Sheet, assuming a 15 percent increase in sales, no new external debt or equity financing, and a constant payout ratio.
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Survey Of Accounting
Authors: Carl S. Warren, Amanda Farmer, Jefferson P. Jones
10th Edition
0357900294, 9780357900291
