Consider the following incomestatement for the Heir Jordan Corporation:

  

HEIR JORDAN CORPORATION Income Statement
  Sales					$	47,000
  Cost						31,300
  Taxable income					$	15,700
  Taxes (35%)						5,495
  Net income					$	10,205
      Dividends	$	2,500
      Addition to retainedearnings		7,705

  

The balance sheet for the HeirJordan Corporation follows.

  

HEIR JORDAN CORPORATION Balance Sheet
Assets		Liabilities and Owners’ Equity
  Current assets				  Currentliabilities
    Cash	$	2,950		    Accountspayable	$	2,400
    Accountsreceivable		4,100		    Notespayable		5,400
    Inventory		6,400		      Total	$	7,800
      Total	$	13,450		  Long-term debt	$	28,000
				  Owners’ equity
  Fixed assets				    Commonstock and paid-in surplus	$	15,000
    Netplant and equipment	$	41,300		    Retainedearnings		3,950
				      Total	$	18,950
  Total assets	$	54,750		  Total liabilitiesand owners’ equity	$	54,750

   

Prepare a pro forma balance sheet, assuming a 15 percentincrease in sales, no new external debt or equity financing, and aconstant payout ratio. (Round your answers to 2 decimalplaces. (e.g., 32.16))

HEIR JORDAN CORPORATION Pro Forma Balance Sheet
Assets		Liabilities and Owners’ Equity
  Current assets				  Currentliabilities
    Cash		$		    Accountspayable		$
    Accountsreceivable				    Notespayable
    Inventory				      Total		$
      Total		$		  Long-term debt		$
				  Owners’ equity
  Fixed assets				    Commonstock and paid-in surplus
    Netplant and equipment				    Retainedearnings
				      Total		$
  Total assets		$		  Total liabilitiesand owners’ equity		$

Calculate the EFN. (Negative amount should be indicatedby a minus sign. Round your answer to 2 decimalplaces. (e.g., 32.16))

  EFN

$  Â