The balance sheet for Heir Jordan Corp is shown above Based on this information

Question

The balance sheet for Heir Jordan Corp is shown above Based on this information and the income statement in the previous problem, supply the missing % information in the table using the percent sales approach. Put “n/a” where appropriate. Hint: look back through the chapter and see which balance sheet accounts are a percent of sales and which are not.

(PLEASE TYPE THE ANSWER)

HEIR JORDAN CORPORATION Sales Costs Taxable income Taxes (35%) Net income Pro Forma Income Statement $46,000 37,600 $8,400 2,940 $5,460 Dividends: $2,400 Addition to Ret Earnings: $3,060

Explanation / Answer

Heir Jordan Corporation Sales=(A) $         46,000.00 Cost=(B) $         37,600.00 Taxable Income $           8,400.00 Tax @35% $           2,940.00 Net Income $           5,460.00 Dividends $           2,400.00 Addition to Retained Earnings $           3,060.00 HEIR JORDAN Balance Sheet % of Sales Assets Cash $           2,950.00 ($2950/$46000)= 6.41% Accounts Receivable $           4,100.00 ($4100/$46000)= 8.91% Inventories $           6,400.00 ($6400/$46000)= 13.91% Net Fixed Assets $         41,300.00 ($41300/$46000)= 89.78% Total Assets $         54,750.00 ($54750/$46000)= 119.02% Liabilties Accounts Payable $           2,400.00 ($2400/$46000)= 5.22% Notes Payables $           5,400.00 n/a Long Term Debts $         28,000.00 n/a Common Stock & Paid in surplus $         15,000.00 Retained Earnings $           3,950.00 Total Liabilities & Equity(2) $         54,750.00 Note: Cash,Accounts Receiivable,Inventories,Net Fixed Assets and Accounts Payable are in % of sales. Note Payable and long term debts are not change due to change in sales.

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