Information from the financial statements of the Heir Jordan Corporation are shown below. Prepare the pro...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Information from the financial statements of the Heir Jordan Corporation are shown below. Prepare the pro forma financial statements and calculate EFN, assuming a 15 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. Sales Costs Cash Accounts payable Notes payable Long-term debt Common stock LA LA LA LA LA LA Retained earnings Dividends Net income $ Accounts receivable Inventory Net plant and equipment $ $ $ $ $ LA LA LA LA LA LA LA $ $ $ $ $ $ $ 46,000 37,600 2,950 4,100 6,400 41,300 2,400 5,400 28,000 15,000 3,950 2,880 6,552 Increase in sales Tax rate Complete the following analysis. Do not hard code values in your calculations. Payout ratio Pro forma income statement Sales Costs Taxable income Taxes Net income 15% 21% Dividends Addition to retained earnings Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets External financing needed Balance Sheet Liabilities and Owners' equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Retained earnings Total Total liabilities and owners' equity Information from the financial statements of the Heir Jordan Corporation are shown below. Prepare the pro forma financial statements and calculate EFN, assuming a 15 percent increase in sales, no new external debt or equity financing, and a constant payout ratio. Sales Costs Cash Accounts payable Notes payable Long-term debt Common stock LA LA LA LA LA LA Retained earnings Dividends Net income $ Accounts receivable Inventory Net plant and equipment $ $ $ $ $ LA LA LA LA LA LA LA $ $ $ $ $ $ $ 46,000 37,600 2,950 4,100 6,400 41,300 2,400 5,400 28,000 15,000 3,950 2,880 6,552 Increase in sales Tax rate Complete the following analysis. Do not hard code values in your calculations. Payout ratio Pro forma income statement Sales Costs Taxable income Taxes Net income 15% 21% Dividends Addition to retained earnings Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets External financing needed Balance Sheet Liabilities and Owners' equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock Retained earnings Total Total liabilities and owners' equity
Expert Answer:
Answer rating: 100% (QA)
Proforma Income Statement Sales increase by 15 Part... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Posted Date:
Students also viewed these accounting questions
-
The following items were taken from the financial statements of D. Gygi Company. (All amounts are in thousands.) Instructions Prepare a classified balance sheet in good form as of December 31, 2019....
-
Below are selected data from the financial statements of Jewell Company for 2008 and 2009. Required: Determine whether the debt-to-equity ratio is increasing or decreasing and whether the company...
-
The following information is from the financial statements of the Core Products Group for the first three years of its operations. Required a. Identify all book- tax differences and classify each...
-
Bonita Company's income statement contained the following condensed information. BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding...
-
Financial information related to Ebony Interiors for February and March 2014 is as follows: a. Prepare balance sheets for Ebony Interiors as of February 28 and March 31, 2014. b. Determine the amount...
-
FINANCIAL STATEMENTS The Income Statement and Balance Sheet columns of Wen Company's work sheet are shown on the next page. Additional information needed to prepare the financial statements is as...
-
The piece of rubber is originally rectangular. Determine the average shear strain xy at A if the corners B and D are subjected to the displacements that cause the rubber to distort as shown by the...
-
The following form is used by Matsuto Manufacturing Co. to compute payroll taxes incurred during April: Required: 1. Using the above form, calculate the employers payroll taxes for April. Assume that...
-
A disk (Idisk = 12MR2) of mass 200kg and radius 2m is rotating at rad/s. A small object of mass 40 kg then collides with and sticks to the disk at a location halfway between the center and the edge....
-
Forecasting with the Parsimonious Method and Estimating Share Value Using the ROPI Model Following are income statements and balance sheets for Cisco Systems. Cisco Systems Consolidated Statements of...
-
The innovative ideas that could be applied within the childcare service organisation to streamline processes and practices around issues it is currently facing, which include a high number of...
-
17. Find the value of the following expressions: a. 124+ 6/3 b. 8 - 7/3 c. 8 static cast 7/3. - d. 12 % 5 * 6-7
-
How do hypervisors differ in their approach to resource management between Type 1 (bare-metal) and Type 2 (hosted) hypervisors? Discuss the impact on system performance and security.
-
An oil refinery plant has requested permission from the community to expand. The expansion is likely to increase the number of deaths in the community due to increased rates of cancer. The number of...
-
12. An amusement park ride swings riders around a 25 meter radius circle at a speed of 16 m/s. What is the centripetal acceleration in meters per second-squared felt by each rider? (Answer with 3...
-
Calculate the risk of 280% abstinence amonge those in any Bup group relative to those in the placebo group. Write a interpation answer once solved of your 7.80% <80 TOTAL ANY ABULP 112 278 390...
-
A small apartment has the following electrical loads: 4 x 60 W lamps in use 4 hours each day 4 x 1000 W heaters in use 3 hours each day 1 x 2kW immersion heater in use 2 hours each day 1 x 3 kW...
-
1. Firms may hold financial assets to earn returns. How the firm would classify financial assets? What treatment will such financial assets get in the financial statements in accordance with US GAAP...
-
Comparing Mutually Exclusive Projects Eads Industrial Systems Company (EISC) is trying to decide between two different conveyor belt systems. System A costs $380,000, has a four- year life, and...
-
Calculating EFN in Problem 25, suppose the firm wishes to keep its debtequity ratio constant. What is EFN now?
-
Determining Portfolio Weights What are the portfolio weights for a portfolio that has 100 shares of Stock A that sell for $40 per share and 130 shares of Stock B that sell for $22 per share?
-
Explain the role of robotics and smart factories in manufacturing, services, and supply chains.
-
What is CAD/CAE? Provide one nontextbook example.
-
Research and write a short onetwo page paper on recent advances in robotics and their applications.
Study smarter with the SolutionInn App