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Consider the following income statement for the Heir Jordan Corporation:    HEIR JORDAN CORPORATION Income Statement...

Consider the following income statement for the Heir Jordan Corporation:

  

HEIR JORDAN CORPORATION
Income Statement
  Sales $ 42,000
  Costs 32,800
  Taxable income $ 9,200
  Taxes (24%) 2,208
  Net income $ 6,992
      Dividends $ 2,503
      Addition to retained earnings 4,489

  

The balance sheet for the Heir Jordan Corporation follows.

  

HEIR JORDAN CORPORATION
Balance Sheet
Assets Liabilities and Owners’ Equity
  Current assets   Current liabilities
    Cash $ 3,150     Accounts payable $ 2,400
    Accounts receivable 4,500     Notes payable 4,300
    Inventory 6,400       Total $ 6,700
      Total $ 14,050   Long-term debt $ 25,000
  Owners’ equity
  Fixed assets     Common stock and paid-in surplus $ 13,000
    Net plant and equipment $ 35,600     Retained earnings 4,950
      Total $ 17,950
  Total assets $ 49,650   Total liabilities and owners’ equity $ 49,650

  

Prepare a pro forma balance sheet, assuming an increase in sales of 13 percent, 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.)


Calculate the EFN. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

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