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Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales					$	47,200
Costs						35,200
Taxable income					$	12,000
Taxes (23%)						2,760
Net income					$	9,240
Dividends	$	2,502
Addition to retained earnings		6,738

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION Balance Sheet
Assets				Liabilities and Owners Equity
Current assets				Current liabilities
Cash	$	3,100		Accounts payable	$	2,400
Accounts receivable		4,400		Notes payable		4,200
Inventory		6,400		Total	$	6,600
Total	$	13,900		Long-term debt	$	25,000
				Owners equity
Fixed assets				Common stock and paid-in surplus	$	12,000
Net plant and equipment	$	35,400		Retained earnings		5,700
				Total	$	17,700
Total assets	$	49,300		Total liabilities and owners equity	$	49,300

Prepare a pro forma balance sheet, assuming an increase in sales of 12 percent, no new external debt or equity financing, and a constant payout ratio.

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