Question

8.

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Income Statement Sales Cost $49,000 40,300 Taxable income Taxes (22%) $ 8,700 1,914 Net income $ 6,786 Dividends Addition to retained $2,400 4,386 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.) Balance Sheet Percentage of Sales Percentage of Sales Assets Liabilities and Owners' Equity Current liabilities Current assets Cash Accounts receivable Inventory 2,950 4,100 6,400 $ 13,450 Accounts payable Notes payable 2,400 5,400 Total Total Long-term debt Owners' equity 7,800 28,000 Common stock and paid-in surplus Retained earnings 15,000 3,950 18,950 54,750 Fixed assets Net plant and equipment $41,300 Total Total assets $ 54,750 Total liabilities and owners' equity

Answer 1

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