Consider the following income statement for the Heir Jordan Corporation:
| HEIR JORDAN CORPORATION Income Statement | |||||||
| Sales | $ | 43,500 | |||||
| Cost | 34,100 | ||||||
| | | ||||||
| Taxable income | $ | 9,400 | |||||
| Taxes (35%) | 3,290 | ||||||
| | | ||||||
| Net income | $ | 6,110 | |||||
| | | ||||||
| Dividends | $ | 3,000 | |||||
| Addition to retained earnings | 3,110 | ||||||
| | |||||||
|
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. Round your answers to 2 decimal places.
(e.g., 32.16))
|
| HEIR JORDAN CORPORATION Balance Sheet | ||||||||||||||
| $ | Percentage of Sales | $ | Percentage of Sales | |||||||||||
| Assets | Liabilities and Owners’ Equity | |||||||||||||
| Current assets | Current liabilities | |||||||||||||
| Cash | $ | 2,550 | Accounts payable | $ | 2,400 | |||||||||
| Accounts receivable | 3,800 | Notes payable | 5,100 | |||||||||||
| Inventory | 9,000 | |||||||||||||
| | | | | | | |||||||||
| Total | $ | 15,350 | Total | $ | 7,500 | |||||||||
| | | | | | | |||||||||
| Long-term debt | $ | 24,000 | ||||||||||||
| Owners’ equity | ||||||||||||||
| Common stock and paid-in surplus | $ | 16,000 | ||||||||||||
| Retained earnings | 5,850 | |||||||||||||
| Fixed assets | | | | |||||||||||
| Net plant and equipment | $ | 38,000 | Total | $ | 21,850 | |||||||||
| | | | | | | |||||||||
| Total assets | $ | 53,350 | Total liabilities and owners’ equity | $ | 53,350 | |||||||||
| | | | | | | |||||||||
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