Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $47,600
Costs 35,600 Taxable income $12,000 Taxes (25%) 3,000 Net income $9,000 Dividends $3,000 Addition to retained earnings 6,000 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. HEIR JORDAN CORPORATIONBalance SheetAssets Liabilities and Ownersâ EquityCurrent assets Current liabilitiesCash $2,050 Accounts payable $2,400 Accounts receivable 4,700 Notes payable 4,500 Inventory 6,400 Total $6,900 Total $13,150 Long-term debt $25,000 Ownersâ equity Fixed assets Common stock and paid-in surplus $15,000 Net plant and equipment $36,000 Retained earnings 2,250 Total $17,250 Total assets $49,150 Total liabilities and ownersâ equity $49,150 Prepare a pro forma balance sheet, assuming an increase in sales of 13%, no new external debt or equity financing, and a constant payout ratio. Assets Liabilities and Owner's Equity Cash Accounts Payable Accounts Recievable Notes Payable Inventory Total Total: Long-term Debt Owners Equity Fixed Assets Common stock and paid-in surplus Net Plants and Equipment Retained Earnings Total Total Assets Total Liabilities and Owners Equity Calculate the EFN.