Question

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $46,800 Costs 36.200 Taxable income Taxes (35) $ 10,600 3,710 Net income $ 6.890 Dividends Addition to retained earnings $4400 2490 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 "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g 32.16.) HEIR JORDAN CORPORATION Percentage of Sales Assets Current assets Cash Accounts receivable Balance Sheet Percentage of Sales Liabilities and Owners' Equity Current abilities 2.750 Accounts payable 3.4001 Notes payable $ $ 2400 5,500

Answer 1

Heir Jordan Corporation
Balance Sheet
	(i)	Percentage of sales (i) / $46800		(ii)	Percentage of sales (ii) / $46800
Assets			Liabilities and Owner's Equity
Current assets			Current Liabilities
Cash	$            2,750	5.88%	Accounts Payable	$              2,400	5.13%
Accounts Receivables	$            3,400	7.26%	Notes payable	$              5,500	0
Inventory	$            9,000	19.23%
Total	$         15,150	32.37%	Total	$              7,900	0
			Long term Debt	$            24,000	0
Fixed Assets			Owner's Equity
Net Plant and Equipment	$         38,800	82.91%	Common stock and paid - in surplus	$            20,000	0
			Retained Earnings	$              2,050	0
			Total	$            22,050	0
Total assets	$         53,950	115.28%	Total Liabilities and Owner's Equity	$            53,950	0