Using the current year income statement and balance sheet in the previous two problems, prepare a pro forma income statement and balance sheet showing EFN (external financing needed), assuming a 15% increase in sales; no new external debt or equity; and a constant payout ratio.

(PLEASE TYPE ANSWER OUT)

HEIR JORDAN CORPORATION Sales Costs Taxable income Taxes (35%) Net income Pro Forma Income Statement $46,000 37,600 $8,400 2,940 $5,460 Dividends: $2,400 Addition to Ret Earnings: $3,060