projecte duur 0 1 10. Applying Percentage of Sales |L01] The balance sheet for the Heir Jordan Corner tion follows. Based on this information and the income statement in the previous proh lem, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. Put "n/a" where needed Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Percentage Percentage of Sales of Sales Current liabilities Accounts payable $ 2,400 Notes payable 5,400 Total $ 7,800 Long-term debt $28,000 $ 2,950 4,100 6,400 $13,450 TIT $41,300 Owners' equity Common stock and paid-in surplus Retained earnings $15,000 3,950 $18,950 Total assets Total $54,750 Total liabilities and owners' equity $54,750 24. Crosby, Inc., fol. ose will remain anl. Costs calculating EFN (LO2] The most recent financial statements for Crosby, Inc W. Sales for 2018 are projected to grow by 20 percent. Interest expense will constant; the tax rate and the dividend payout rate will also remain constant other expenses, current assets, fixed assets, and accounts payable increase neously with sales. If the firm is operating at full capacity and no new debt ore issued, what external financing is needed to support the 20 percent growth rate in sal increase sponta w debt or equity is CROSBY, INC. 2017 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends $39,250 Addition to retained earnings 81,620 $980.760 792,960 20,060 $167.740 14.740 $153,000 32.130 $120.870 Assets Current assets Cash Accounts receivable Inventory Total CROSBY, INC. Balance Sheet as of December 31, 2017 Liabilities and Owners' Equity Current liabilities $ 27,920 Accounts payable 42,630 Notes payable 95,910 $166,460 Long-term debt Owners' equity $455,980 Common stock and paid-in surplus Retained earnings Total $622,440 Total liabilities and owners' equity Total Fixed assets Net plant and equipment $ 71,720 17,620 $ 89,340 $170,000 Total assets $140,000 223,100 $363.100 $622,440 projecte duur 0 1 10. Applying Percentage of Sales |L01] The balance sheet for the Heir Jordan Corner tion follows. Based on this information and the income statement in the previous proh lem, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. Put "n/a" where needed Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Percentage Percentage of Sales of Sales Current liabilities Accounts payable $ 2,400 Notes payable 5,400 Total $ 7,800 Long-term debt $28,000 $ 2,950 4,100 6,400 $13,450 TIT $41,300 Owners' equity Common stock and paid-in surplus Retained earnings $15,000 3,950 $18,950 Total assets Total $54,750 Total liabilities and owners' equity $54,750 24. Crosby, Inc., fol. ose will remain anl. Costs calculating EFN (LO2] The most recent financial statements for Crosby, Inc W. Sales for 2018 are projected to grow by 20 percent. Interest expense will constant; the tax rate and the dividend payout rate will also remain constant other expenses, current assets, fixed assets, and accounts payable increase neously with sales. If the firm is operating at full capacity and no new debt ore issued, what external financing is needed to support the 20 percent growth rate in sal increase sponta w debt or equity is CROSBY, INC. 2017 Income Statement Sales Costs Other expenses Earnings before interest and taxes Interest paid Taxable income Taxes (21%) Net income Dividends $39,250 Addition to retained earnings 81,620 $980.760 792,960 20,060 $167.740 14.740 $153,000 32.130 $120.870 Assets Current assets Cash Accounts receivable Inventory Total CROSBY, INC. Balance Sheet as of December 31, 2017 Liabilities and Owners' Equity Current liabilities $ 27,920 Accounts payable 42,630 Notes payable 95,910 $166,460 Long-term debt Owners' equity $455,980 Common stock and paid-in surplus Retained earnings Total $622,440 Total liabilities and owners' equity Total Fixed assets Net plant and equipment $ 71,720 17,620 $ 89,340 $170,000 Total assets $140,000 223,100 $363.100 $622,440
