Problem 4-10 Applying Percentage of Sales [LO1]

Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales					$	46,800
Costs						36,200
Taxable income					$	10,600
Taxes (35%)						3,710
Net income					$	6,890
Dividends	$	3,400
Addition to retained earnings		3,490

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								Percentage of Sales
Assets								Liabilities and Owners Equity
Current assets								Current liabilities
Cash	$	2,750						Accounts payable	$	2,400
Accounts receivable		3,400						Notes payable		5,500
Inventory		9,000
Total	$	15,150						Total	$	7,900
								Long-term debt	$	24,000
								Owners equity
								Common stock and paid-in surplus	$	20,000
								Retained earnings		2,050
Fixed assets
Net plant and equipment	$	38,800						Total	$	22,050
Total assets	$	53,950						Total liabilities and owners equity	$	53,950