i need answer just for question 5

Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION

Income StatementSales$42,000Costs32,800Taxable income$9,200Taxes (35%)3,220Net income$5,980Dividends$1,800Addition to retained earnings4,180

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION

Balance SheetAssetsLiabilities and Owners? EquityCurrent assetsCurrent liabilitiesCash$3,150Accounts payable$2,400Accounts receivable4,500Notes payable4,300Inventory6,400Total$6,700Total$14,050Long-term debt$25,000Owners? equityFixed assetsCommon stock and paid-in surplus$13,000Net plant and equipment$35,600Retained earnings4,950Total$17,950Total assets$49,650Total liabilities and owners? equity$49,650

Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, 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.)

HEIR JORDAN CORPORATION

Pro Forma Balance SheetAssetsLiabilities and Owners? EquityCurrent assetsCurrent liabilitiesCash$Accounts payable$Accounts receivableNotes payableInventoryTotal$Total$Long-term debt$Owners? equityFixed assetsCommon stock and paid-in surplusNet plant and equipment$Retained earningsTotal$Total assets$Total liabilities and owners? equity$

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

EFN$

4/9/2017 1. Assignment Print View Award: 5.00 points Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $48,800 34,800 Taxable income Taxes (30%) $14,000 4,200 Net income $ 9,800 Dividends Addition to retained earnings $ 3,200 6,600 The projected sales growth rate is 18 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all amounts as positive values. Do not round intermediate calculations.) HEIR JORDAN CORPORATION Pro Forma Income Statement Sales Costs $ 57584 41064 Taxable income Taxes $ 16520 4956 Net income $ 11564 What is the projected addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings $ 7788 References Worksheet Difficulty: Basic Learning Objective: 04-01 How to apply the percentage of sales method. 2. Award: 5.00 points Southern Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $780,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Maximum sales growth 8.69 % References Worksheet http://ezto.mheducation.com/hm.tpx Difficulty: Intermediate Learning Objective: 04-01 How to apply the percentage of sales method. 1/4 4/9/2017 Assignment Print View 3. Award: 5.00 points Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $ 42,000 32,800 Taxable income Taxes (35%) $ 9,200 3,220 Net income $ 5,980 Dividends Addition to retained earnings $ 1,800 4,180 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable Inventory Total $ 3,150 4,500 6,400 7.50 10.71 15.24 $ 14,050 33.45 Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Fixed assets Net plant and equipment $ 35,600 84.76 Total assets $ 49,650 118.21 Total Total liabilities and owners' equity Percentage of Sales $ 2,400 4,300 5.71 0 $ 6,700 0 $ 25,000 0 $ 13,000 4,950 0 0 $ 17,950 0 $ 49,650 0 Hints Hint #1 References Worksheet Difficulty: Basic Learning Objective: 04-01 How to apply the percentage of sales method. 4. Award: 5.00 points http://ezto.mheducation.com/hm.tpx 2/4 4/9/2017 Assignment Print View Southern Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $820,000. Fixed assets are $490,000 and sales are projected to grow to $900,000. How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ 4780.48 New fixed assets rev: 03_09_2016_QC_CS-18965 References Worksheet Learning Objective: 04-01 How to apply the percentage of sales method. Difficulty: Intermediate Section: 4.3 The Percentage of Sales Approach 5. Award: 5.00 points Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $ 42,000 32,800 Taxable income Taxes (35%) $ 9,200 3,220 Net income $ 5,980 Dividends Addition to retained earnings $ 1,800 4,180 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Current liabilities $ 3,150 Accounts payable $ 4,500 Notes payable Assets Current assets Cash Accounts receivable Inventory 6,400 Total $ 14,050 Fixed assets Net plant and equipment $ 35,600 Total $ Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total assets $ 49,650 2,400 4,300 6,700 $ 25,000 $ 13,000 4,950 $ 17,950 Total liabilities and owners' equity $ 49,650 Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, 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.) Assets Current assets Cash Accounts receivable $ Inventory Total http://ezto.mheducation.com/hm.tpx HEIR JORDAN CORPORATION Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total $ Long-term debt $ $ $ 3/4 4/9/2017 Assignment Print View Fixed assets Net plant and equipment $ Owners' equity Common stock and paid-in surplus Retained earnings Total Total assets $ Total liabilities and owners' equity $ $ Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) EFN $ References Worksheet Difficulty: Basic Learning Objective: 04-02 How to compute the external financing needed to fund a firms growth. http://ezto.mheducation.com/hm.tpx 4/4