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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 47,600 Costs 35,600 Taxable income $ 12,000 Taxes (25%) 3,000 Net income $ 9,000 Dividends Addition to retained earnings $2,505 6,495 The balance sheet for the Heir Jordan Corporation follows. Assets Current assets Cash Accounts receivable HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Current liabilities $ 2,050 Accounts payable $ 2,400 4,700 Notes payable 4,500 Inventory 6,400 Total $ 6,900 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,050 Accounts payable $ 2,400 Accounts receivable 4,700 Notes payable 4,500 Inventory 6,400 Total $ 6,900 Total $25,000 $ 13,150 Long-term debt Owners' equity Common stock and paid-in surplus $36,000 Retained earnings $ 15,000 Fixed assets Net plant and equipment 2,250 Total $ 17,250 Total assets $ 49,150 Total liabilities and owners' equity $ 49,150 Prepare a pro forma balance sheet. All assets, costs, and accounts payable are proportionate to sales; and assuming an increase in sales of 13 percent, no new external Prepare a pro forma balance sheet. All assets, costs, and accounts payable are proportionate to sales; and assuming an increase in sales of 13 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 HEIR JORDAN CORPORATION Pro Forma Balance Sheet Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Current assets Cash Accounts receivable Inventory Total Total Fixed assets Net plant and equipment Long-term debt Owners' equity Common stock and paid-in surplus Retained earnings Total Total liabilities and owners' equity Total assets Assets Current assets Cash Accounts receivable Inventory Total 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 earnings Total Total liabilities and owners' equity Fixed 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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