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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $46,500 Costs 36,100 Taxable income Taxes (23%) $ 10,400 2,392 Net income $ 8,008 Dividends Addition to retained earnings $ 2,516 5,492 The balance sheet for the Heir Jordan Corporation follows. Assets Current assets --- HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Current liabilities An The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,600 Accounts payable $ 2,400 Accounts receivable 3,700 Notes payable 5,200 Inventory 9,000 Total $ 7,600 Total $ 15,300 Long-term debt $24,000 Fixed assets Net plant and equipment Owners' equity Common stock and paid-in surplus $38,200 Retained earnings $ 17,000 4,900 Total $ 21,900 Total assets $53,500 Total liabilities and owners' equity $53,500 Prepare a pro forma balance sheet, assuming an increase in sales of 9 percent, 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.) Assets Current assets Cash Accounts receivable Inventory Total HEIR JORDAN CORPORATION Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Retained earings Total Total liabilities and owners' equity Forced assets Net plant and equipment Total assets Calculate the EFN. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) EFN

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