Consider the following income statement for the Heir Jordan Corporarion: sales=47,200
costs=35,200
taxes 23%.
The project sales growth rate is 17 percent,
dividend = 1700
Addition to retained earnings 6,100
The balance sheet for the Heir Jordan Corporation follows.
HEIR JORDAN CORPORATION
Balance Sheet
Assets Liabilities and Owners’ Equity Current assets Current liabilities
Cash $ 3,100 Accounts payable $ 2,400
Accounts receivable 4,400 Notes payable 4,200
Inventory 6,400
Total $ 6,600 Total $ 13,900
Long-term debt $ 25,000
Owners’ equity
Fixed assets
Common stock and paid-in surplus $ 12,000
Net plant and equipment $ 35,400
Retained earnings 5,700
Total $ 17,700
Total assets $ 49,300 Total liabilities and owners’ equity $ 49,300
Prepare a proforma 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.)