Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 48,800 Costs 34,800 Taxable income $ 14,000 Taxes (30%) 4,200 Net income $ 9,800 Dividends $ 3,200 Addition...

4.0 Ratings (660 Votes)



HEIR JORDAN CORPORATION
Balance Sheet
		Percentage of Sales = Item Value /Sales *100			Percentage of Sales = Item Value /Sales *100
Assets			Liabilities and Owners’ Equity
Current assets			Current liabilities
Cash	$2,650	5.43%	Accounts payable	$2,400	4.92%
Accounts receivable	$3,600	7.38%	Notes payable	$5,300	0
Inventory	$9,000	18.44%

Total	$15,250	31.25%	Total	$7,700	4.92%

			Long-term debt	$24,000	0
			Owners’ equity
			Common stock and paid-in surplus	$18,000	0
			Retained earnings	$3,950	0
Fixed assets
Net plant and equipment	$38,400	78.69%	Total	$21,950	0

Total assets	$53,650		Total liabilities and owners’ equity	$53,650

Notes Payable as given in question has no link with sales. Long-Term Debt and Common Stock depends upon firm financing startegies and do not directly vary with sales.Retained earnings is related with sales only when increase in sales is capable of increasing revenue and additional retention income to the firm.

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

HEIR JORDAN CORPORATION Income Statement
Sales			$	48,800
Costs				34,800

Taxable income			$	14,000
Taxes (30%)				4,200

Net income			$	9,800

Dividends	$	3,200
Addition to retainedearnings		6,600

Other questions asked by students