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PLEASE HELP!! Consider the following income statement for the Heir Jordan Corporation HEIR JORDAN CORPORATION Income Statement Sales Costs $48,200 34,000 Taxable income Taxes (35%)
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Consider the following income statement for the Heir Jordan Corporation HEIR JORDAN CORPORATION Income Statement Sales Costs $48,200 34,000 Taxable income Taxes (35%) $ 14,200 4,970 Net income $ 9,230 Dividends Addition to retained earnings $2,600 6,630 The balance sheet for the Heir Jordan Corporation follows HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities $ 4,000 Cash Accounts receivable $ 2,350 Accounts payable 5,300 Notes payable 8,200 $ 12,200 $ 21,000 Common stock and paid-in surplus $ 12,000 Inventory 9,000 Total Total $ 16,650 Long-term debt Owners' equity Fixed assets Net plant and equipment 37,200 Retained earnings 8,650 $ 20,650 53,850 Total assets $ 53,850 Total liabilities and owners' equity 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.)Step by Step Solution
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