Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 46,500 Costs 36,100 Taxable income $ 10,400 Taxes (30%) 3,120 Net income $ 7,280 Dividends $ 3,100 Addition to retained earnings 4,180 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,600 Accounts payable $ 2,400 Accounts receivable 3,700 Notes payable 5,200 Inventory 9,000 Total $ 7,600 Total $ 15,300 Long-term debt $ 24,000 Owners’ equity Fixed assets Common stock and paid-in surplus $ 17,000 Net plant and equipment $ 38,200 Retained earnings 4,900 Total $ 21,900 Total assets $ 53,500 Total liabilities and owners’ equity $ 53,500 Prepare a pro forma balance sheet, assuming a 10 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Pro Forma Balance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ Accounts payable $ Accounts receivable Notes payable Inventory Total $ Total $ Long-term debt $ Owners’ equity Fixed assets Common stock and paid-in surplus Net plant and equipment $ Retained earnings Total $ Total assets $ Total liabilities and owners’ equity $ Calculate the EFN. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) EFN $
Heir Jordan Corporation | |||||
Dividend in percentage of Net Income =($3100/$7280)*100 | 43% | ||||
Retained Earnings in percentage of Income=($4180/$7280)*100 | 57% | ||||
Current | Performa Income Statement | ||||
Sales(A) | $ 46,500.00 | 46500*1.10 | $ 51,150 | ||
Operating Cost(B) | $ 36,100.00 | 36100*1.10 | $ 39,710 | ||
EBT(D )=(C)=(A)-(B) | $ 10,400.00 | $ 11,440 | |||
Taxable Income=(D)=(C )*30% | $ 3,120.00 | $ 3,432 | |||
EAT=(E )=(C )-(D) | $ 7,280.00 | $ 8,008 | |||
Dividend=(I)=(E)*43% | $ 3,100.00 | 8008*43% | $ 3,443 | ||
Retained Earnings=(H)-(I) | $ 4,180.00 | $ 4,565 | |||
Current Balance Sheet | Performa Balance Sheet | ||||
Assets | |||||
Cash | $ 2,600.00 | 2600*1.10 | $ 2,860.00 | ||
Accounts Receivable | $ 3,700.00 | 3700*1.10 | $ 4,070.00 | ||
Inventories | $ 9,000.00 | 9000*1.10 | $ 9,900.00 | ||
Net Fixed Assets | $ 38,200.00 | 38200*1.10 | $ 42,020.00 | ||
Total Assets=(A) | $ 53,500.00 | $ 58,850 | |||
Liabilties | |||||
Accounts Payable | $ 2,400.00 | 2400*1.10 | $ 2,640 | ||
Notes Payables | $ 5,200.00 | $ 5,200 | |||
Long Term debt | $ 24,000.00 | $ 24,000 | |||
Common Stock | $ 17,000.00 | $ 17,000 | |||
Retained Earnings=($4900+$4565) | $ 4,900.00 | $ 9,465 | |||
Total Liabilities & Equity=(B) | $ 53,500.00 | $ - | $ 58,305 | ||
AFN=(A)-(B) | $ 545 | ||||
AFN | $ 545 | ||||
If 10% increase in sales Note Payable will be($5200+$545) | $ 5,745 |
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales...
Consider the following income statement for the Heir Jordan Corporation: 00 Sales HEIR JORDAN CORPORATION Income Statement $46,800 36,200 Costs 12.5 points Taxable income Taxes (35%) $ 10,600 3,710 Net income $ 6,890 eBook Dividends Addition to retained earnings $2,519 4,371 Print References The balance sheet for the Heir Jordan Corporation follows. Assets Current assets Cash Accounts receivable HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Current liabilities $ 2,750 Accounts payable $ 2,400 3,400 Notes payable 5,500 Inventory...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $47,200 35,200 Taxable income Taxes (23%) $ 12,000 2,760 Net income 9,240 Dividends Addition to retained $2,502 6,738 earnings The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable 4,400 Notes payable S 3100 Accounts payable 2,400 4.200 6,600 $25,000 Inventory 6,400 Total Total $ 13,900 Long-term...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement $48,200 34,000 Sales Costs Taxable income Taxes (23%) $ 14,200 3,266 Net income $ 10,934 Dividends Addition to retained eamings $ 2,511 8,423 The balance sheet for the Heir Jordan Corporation follows. Assets Current assets Cash Accounts receivable HEIR JORDAN CORPORATION Balance Sheet Liabilities and Owners' Equity Current liabilities $ 2,350 Accounts payable $ 4,000 5,300 Notes payable 8,200 Inventory 9,000 Total $ 12,200 Total...
Consider the following income statement for the Heir Jordan Corporation: The balance sheet for the Heir Jordan Corporation follows. Prepare a pro forma balance sheet, assuming a sales increase of 15 percent, no new external debt or equity financing, and a constant payout ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Calculate the EFN. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your...
Consider the following income statement for the Heir Jordan Corporation: Sales Costs HEIR JORDAN CORPORATION Income Statement $45,300 35.100 Taxable income Taxes (25%) $ 10,200 2,550 Net income $ 7,650 Dividends Addition to retained earnings $2,504 5,146 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,000 Accounts payable $ 2.400 Accounts receivable 4,600Notes payable 4,400 Inventory 6,400 Total $ 6,800 Total $ 13,000...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement $45,300 35.100 Sales Costs Taxable income Taxes (259) $10,200 2,550 Net income $ 7,650 Dividends Addition to retained earnings $2,504 5,146 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2.000 Accounts payable $ 2,400 Accounts receivable 4.600 Notes payable 4,400 Inventory 6,400 Total $ 6,800 Total $ 13,000...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 49,000 Cost 40,300 Taxable income $ 8,700 Taxes (22%) 1,914 Net income $ 6,786 Dividends $ 2,400 Addition to retained earnings 4,386 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,950 Accounts payable $ 2,400 Accounts receivable 4,100 Notes payable 5,400 Inventory 6,400 Total $ 7,800...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 43,800 Costs 34,800 Taxable income $ 9,000 Taxes (21%) 1,890 Net income $ 7,110 Dividends $ 2,518 Addition to retained earnings 4,592 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,700 Accounts payable $ 2,400 Accounts receivable 3,500 Notes payable 5,400 Inventory 9,000...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 47,200 Costs 35,200 Taxable income $ 12,000 Taxes (23%) 2,760 Net income $ 9,240 Dividends $ 2,502 Addition to retained earnings 6,738 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 3,100 Accounts payable $ 2,400 Accounts receivable 4,400 Notes payable 4,200 Inventory 6,400...
I JUST NEED THE RETAINED EARNINGS AMOUNT Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $45,900 35,400 Taxable income Taxes (22%) $10,500 2,310 Net income $ 8,190 $2,510 Dividends Addition to retained 5,680 earnings The balance sheet for the Heir Jordan Corporation follows. The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash Accounts receivable $ 2,300...