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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

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 (21%) 1,890
Net income $ 7,110
Dividends $ 2,518
Addition to retained earnings 4,592

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION Balance Sheet
Assets Liabilities and Owners Equity
Current assets Current liabilities
Cash $ 2,700 Accounts payable $ 2,400
Accounts receivable 3,500 Notes payable 5,400
Inventory 9,000 Total $ 7,800
Total $ 15,200 Long-term debt $ 24,000
Owners equity
Fixed assets Common stock and paid-in surplus $ 19,000
Net plant and equipment $ 38,600 Retained earnings 3,000
Total $ 22,000
Total assets $ 53,800 Total liabilities and owners equity $ 53,800

Prepare a pro forma balance sheet, assuming an increase in sales of 13 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.)

Calculate the EFN. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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