Proforma Balance Sheet(after change according to proposnate sale)
Assets | amount($) | Liabilites and Owner's equity | amount($) |
current assests | current liabilities | ||
Cash | 3472 | accounts payable | 2688 |
accounts receivable | 4928 | notes payable | 4704 |
inventory | 7168 | total | 7392 |
total | 15568 | long term debt | 28000 |
owners' equity | |||
fixed assests | common stock and paid in surplus | 13440 | |
net plant and equipment | 39648 | retained earnings | 6384 |
total | 19824 | ||
Total assests | 55216 | total liabilities and owners equity | 55216 |
Here,
Assets (A)=49,300$
Sales(S)=47200$
Difference in sale(∆sales)=5664$
Liabilities(L)=43600$
profit margin (PM)=5.1% (Sales 47200$/net income 9240$*100)
Forcasted Sale (FS)=52864$ (sales 47200$*12%)
dividend payout ratio (d)=0.72 ( percent of earnings retained after dividend)
Thus,
EFN ($)=(49300/47200)*5664 - (43600/47200)*5664 - (.05*52864*(1-0.72))
EFN($)=156$
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales...
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