Question

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $42,000 33,000 Taxable income Taxes (21%) $9,000 1,890 Net income $ 7,110 Dividends Addition to retained $2,500 4,610 earnings The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "O" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.)

Answer 1

Cash = 7.14%

Account Receivable = 10 %

Inventory = 15.24 %

Total = 32.38%

Net Plant and Equipment = 83.33 %

Total Assets = 115.71 %

Notes Payable = 9.52%

Total = 15.24%

Long Term Debt = 66.66%

Common Stock = 23.81%

Retained earnings = 10%

Total = 33.81 %

Total Liabilities and Equity = 115.71%