Answer:
pro forma Balance sheet
                              old	increased
    
assets    
non current assets  	37800	43470
net PPE                   37800	43470
Current assets  	15400	17710
Inventory          9000	10350
Accounts receivable  3900	4485
cash                      2500  2875
    
total assets           53200	61180
    
Equity & Liabilities    
common stock    15000	15000
retained earnings  	6800	13930
total                           21800	28930
Liabilities    
long term debt  	24000	24000
    
Current liabilities  	7400	7760
Accounts payable  	2400	2760
notes payable  	5000	5000
    
total                            	53200	60690
EFN = 61180 - 60690 = 490
PAYOUT RATIO = dividends / net income
additions to retained earnings = net income less dividends
Explanation
 Retained earnings = old retained earnings plus additions to retained earnings = 6800 + 7130 =13930
 Missing parts of the Question
Consider the following income statement for the Heir Jordan Corporation:
  
HEIR JORDAN CORPORATION
Income Statement
  Sales    	$	48,500  
  Costs      34,500  
  Taxable income    	$	14,000  
  Taxes (35%)      4,900  
  Net income    	$	9,100  
      Dividends	$	2,900      
      Addition to retained earnings  6,200      
  
The balance sheet for the Heir Jordan Corporation follows.
  
HEIR JORDAN CORPORATION
Balance Sheet
Assets  Liabilities and Owners’ Equity  
  Current assets      Current liabilities    
    Cash	$	2,500      Accounts payable	$	2,400  
    Accounts receivable  3,900      Notes payable  5,000  
    Inventory  9,000        Total	$	7,400  
      Total	$	15,400    Long-term debt	$	24,000  
  Owners’ equity    
  Fixed assets        Common stock and paid-in surplus	$	15,000  
    Net plant and equipment	$	37,800      Retained earnings  6,800  
      Total	$	21,800  
  Total assets	$	53,200    Total liabilities and owners’ equity	$	53,200  
    
1.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.)
2.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.)