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. (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 Balance Sheet Percentage of Sales Percentage of Sales Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $2,050 Accounts payable $2,400 Accounts receivable 4,700 Notes payable 4,500 Inventory 6,400 Total $13,150 Total $6,900 Long-term debt $25,000 Fixed assets Owners’ equity Net plant and equipment $36,000 Common stock and paid-in surplus $15,000 Retained earnings 2,250 Total $17,250 Total assets $49,150 Total liabilities and owners’ equity $49,150

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 18BEA

See similar textbooks

Related questions

Question

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. (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
Balance Sheet
		Percentage of Sales			Percentage of Sales
Assets			Liabilities and Owners’ Equity
Current assets			Current liabilities
Cash	$2,050		Accounts payable	$2,400
Accounts receivable	4,700		Notes payable	4,500
Inventory	6,400
Total	$13,150		Total	$6,900
			Long-term debt	$25,000
Fixed assets			Owners’ equity
Net plant and equipment	$36,000		Common stock and paid-in surplus	$15,000
			Retained earnings	2,250
			Total	$17,250
Total assets	$49,150		Total liabilities and owners’ equity	$49,150

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.