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From the following Income Statement and Balance Sheet prepare a pro forma balance sheet showing EFN, assuming 15% increase in sales, no new external debt
From the following Income Statement and Balance Sheet prepare a pro forma balance sheet showing EFN, assuming 15% increase in sales, no new external debt or equity financing and a constant payout ratio.
Heir Jordon Corporation Income Statement | |||||
Sales | $46,000.00 | Dividends | |||
Costs | $37,600.00 | $2,400.00 | |||
Taxable Income | $8,400.00 | Addition to retain earnings | |||
Taxes (34%) | $2,940.00 | $3,060.00 | |||
Net Income | $5,460.00 | ||||
Heir Jordan Corporation Balance Sheet | |||||
Assets | Liabilities and owners Equity | ||||
$ | % of Sales | $ | % of Sales | ||
Current Assets | Current liabilities | ||||
Cash | 2950 | Accounts Payable | 2400 | ||
Accounts receivable | 4100 | Notes Payable | 5400 | ||
Inventory | 6400 | Total | 7800 | ||
Total | 13450 | Long Term Debt | 28000 | ||
Fixed Assets | Owners Equity | ||||
Net plant & Equipment | 41300 | Common stock & paid in surplus | 15000 | ||
Retained earnings | 3950 | ||||
Total | 18950 | ||||
Total assets | 54750 | Total liabilities & owners equity | 54750 |
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