Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 47,900 Costs 33,900 Taxable income $ 14,000 Taxes (22%) 3,080 Net income $ 10,920 Dividends $ 2,508 Addition...

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Finance

Consider the following income statement for the Heir JordanCorporation:

HEIR JORDAN CORPORATION
Income Statement
  Sales $ 47,900
  Costs 33,900
  Taxable income $ 14,000
  Taxes (22%) 3,080
  Net income $ 10,920
      Dividends $ 2,508
      Addition to retainedearnings 8,412

The balance sheet for the Heir Jordan Corporation follows.

HEIR JORDAN CORPORATION
Balance Sheet
Assets Liabilities and Owners’ Equity
  Current assets   Current liabilities
    Cash $ 2,200     Accounts payable $ 4,000
    Accounts receivable 5,000     Notes payable 5,100
    Inventory 8,000       Total $ 9,100
      Total $ 15,200   Long-term debt $ 22,000
  Owners’ equity
  Fixed assets     Common stock and paid-in surplus $ 18,000
    Net plant and equipment $ 36,600     Retained earnings 2,700
      Total $ 20,700
  Total assets $ 51,800   Total liabilities and owners’ equity $ 51,800

Prepare a pro forma balance sheet, assuming an increase in salesof 13 percent, no new external debt or equity financing, and aconstant payout ratio. (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.)
Calculate the EFN. (A negative answer should beindicated by a minus sign. Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)

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Consider the following income statement for the Heir JordanCorporation: HEIR JORDAN CORPORATIONIncome Statement Sales$47,900 Costs33,900 Taxable income$14,000 Taxes (22%)3,080 Net income$10,920 Dividends$2,508 Addition to retainedearnings8,412 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATIONBalance SheetAssetsLiabilities and Owners’ Equity Current assets Current liabilities Cash$2,200 Accounts payable$4,000 Accounts receivable5,000 Notes payable5,100 Inventory8,000 Total$9,100 Total$15,200 Long-term debt$22,000 Owners’ equity Fixed assets Common stock and paid-in surplus$18,000 Net plant and equipment$36,600 Retained earnings2,700 Total$20,700 Total assets$51,800 Total liabilities and owners’ equity$51,800 Prepare a pro forma balance sheet, assuming an increase in salesof 13 percent, no new external debt or equity financing, and aconstant payout ratio. (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.)Calculate the EFN. (A negative answer should beindicated by a minus sign. Do not round intermediate calculationsand round your answer to 2 decimal places, e.g.,32.16.)

HEIR JORDAN CORPORATION Income Statement
Sales			$	47,900
Costs				33,900

Taxable income			$	14,000
Taxes (22%)				3,080

Net income			$	10,920

Dividends	$	2,508
Addition to retainedearnings		8,412

HEIR JORDAN CORPORATION Balance Sheet
Assets			Liabilities and Owners’ Equity
Current assets			Current liabilities
Cash	$	2,200	Accounts payable	$	4,000
Accounts receivable		5,000	Notes payable		5,100

Inventory		8,000	Total	$	9,100

Total	$	15,200	Long-term debt	$	22,000

			Owners’ equity
Fixed assets			Common stock and paid-in surplus	$	18,000
Net plant and equipment	$	36,600	Retained earnings		2,700

			Total	$	20,700

Total assets	$	51,800	Total liabilities and owners’ equity	$	51,800