Problem 4-10 Applying Percentage of Sales [LO1]

Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales					$	48,200
Costs						34,000
Taxable income					$	14,200
Taxes (35%)						4,970
Net income					$	9,230
Dividends	$	2,600
Addition to retained earnings		6,630

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	$	2,350						Accounts payable	$	4,000
Accounts receivable		5,300						Notes payable		8,200
Inventory		9,000
Total	$	16,650						Total	$	12,200
								Long-term debt	$	21,000
								Owners equity
								Common stock and paid-in surplus	$	12,000
								Retained earnings		8,650
Fixed assets
Net plant and equipment	$	37,200						Total	$	20,650
Total assets	$	53,850						Total liabilities and owners equity	$	53,850