Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales					$	49,000
Cost						40,300
Taxable income					$	8,700
Taxes (22%)						1,914
Net income					$	6,786
Dividends	$	2,400
Addition to retained earnings		4,386

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION Balance Sheet
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$	2,950		Accounts payable	$	2,400
Accounts receivable		4,100		Notes payable		5,400
Inventory		6,400		Total	$	7,800
Total	$	13,450		Long-term debt	$	28,000
				Owners equity
Fixed assets				Common stock and paid-in surplus	$	15,000
Net plant and equipment	$	41,300		Retained earnings		3,950
				Total	$	18,950
Total assets	$	54,750		Total liabilities and owners equity	$	54,750

Prepare a pro forma balance sheet, assuming a sales increase 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.)

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