FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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  
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