Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION

Income Statement

Sales $ 43,500

Costs 34,100

Taxable income $ 9,400

Taxes (24%) 2,256

Net income $ 7,144

Dividends $ 2,515

Addition to retained earnings 4,629

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION

Balance Sheet

Assets Liabilities and Owners Equity

Current assets Current liabilities

Cash $ 2,550 Accounts payable $ 2,400

Accounts receivable 3,800 Notes payable 5,100

Inventory 9,000 Total $ 7,500

Total $ 15,350 Long-term debt $ 24,000

Owners equity

Fixed assets Common stock and paid-in surplus $ 16,000

Net plant and equipment $ 38,000 Retained earnings 5,850

Total $ 21,850

Total assets $ 53,350 Total liabilities and owners equity $ 53,350

Prepare a pro forma balance sheet, assuming an increase in sales of 15 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.)

Problem 4-11 EFN and Sales |LO2] Consider for the ones Corporate HOW CAN CORPORATION 100 Co 3000 Tee $9.400 2:14 Divers Antoned 5255 HERZORDANCORATION Bu Cure Ca C 12 2400 0.000 1500 $4.000 000 Na DOO Prepare a pro forma balance sheet, assuming an increase in sales of 15 percent, no new external debt or equity financing, and a constant payout Do not found Intermediate calculations and round your answers to 2 decimal places... 32.16.) Ats Current 5 HERR JORDAN CORPORATION Proforma Balance Sheet Lana Owners Current 2.931 About 40.00 10.350.00 fot 17653 Owner Coro 5 Accueil Inventory 5 1 Feed Nand --- Calculate the EFN. A negative should be indicated by a sign. Den round Intermediate calculations and round your wer to 2 decimal places 22.463