Question

In: Finance

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

Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
  Sales $ 43,200
  Costs 34,000
  Taxable income $ 9,200
  Taxes (24%) 2,208
  Net income $ 6,992
     Dividends $ 2,700
     Addition to retained earnings 4,292

The projected sales growth rate is 13 percent.

Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers as positive values. Do not round intermediate calculations.)

What is the projected addition to retained earnings? (Do not round intermediate calculations.)

Solutions

Expert Solution

jeff jeffy answered 4 months ago
Next > < Previous

Related Solutions

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement   Sales...
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement   Sales $ 47,900   Costs 33,900   Taxable income $ 14,000   Taxes (21%) 2,940   Net income $ 11,060      Dividends $ 2,300      Addition to retained earnings 8,760 The projected sales growth rate is 12 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant.
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...
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 $ 43,800   Costs 34,800   Taxable income $ 9,000   Taxes (21%) 1,890   Net income $ 7,110       Dividends $ 2,518       Addition to retained earnings 4,592    The balance sheet for the Heir Jordan Corporation follows.    HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity   Current assets   Current liabilities     Cash $ 2,700     Accounts payable $ 2,400     Accounts receivable 3,500     Notes payable 5,400     Inventory 9,000...
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 $ 48,800   Costs 34,800   Taxable income $ 14,000   Taxes (30%) 4,200   Net income $ 9,800       Dividends $ 3,200       Addition to retained earnings 6,600    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....
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 $ 47,900   Costs 33,900   Taxable income $ 14,000   Taxes (22%) 3,080   Net income $ 10,920       Dividends $ 2,508       Addition to retained earnings 8,412    The balance sheet for the Heir Jordan Corporation follows.    HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners’ Equity   Current assets   Current liabilities     Cash $ 2,200     Accounts payable $ 4,000     Accounts receivable 5,000     Notes payable 5,100     Inventory 8,000...
Consider the following statement of comprehensive income for the Dartmoor Corporation:    DARTMOOR CORPORATION Statement of...
Consider the following statement of comprehensive income for the Dartmoor Corporation:    DARTMOOR CORPORATION Statement of Comprehensive Income   Sales $ 47,000   Cost 31,300   Taxable income $ 15,700   Taxes (35%) 5,495   Net income $ 10,205       Dividends $ 2,500       Addition to retained earnings 7,705    The statement of financial position for the Dartmoor Corporation follows. Based on this information and the statement of comprehensive income, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales,...
Consider the following statement of comprehensive income for the Dartmoor Corporation:    DARTMOOR CORPORATION Statement of...
Consider the following statement of comprehensive income for the Dartmoor Corporation:    DARTMOOR CORPORATION Statement of Comprehensive Income   Sales $ 47,000   Cost 31,300   Taxable income $ 15,700   Taxes (34%) 5,338   Net income $ 10,362       Dividends $ 2,500       Addition to retained earnings 7,705    The statement of financial position for the Dartmoor Corporation follows.    DARTMOOR CORPORATION Statement of Financial Position Assets Liabilities and Owners’ Equity   Current assets   Current liabilities     Cash $ 2,950     Accounts payable $ 2,400     Accounts receivable 4,100     Notes...
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 73,802 Assets 209,087...
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 73,802 Assets 209,087 Debt 38,278 Costs 44,281 Equity 170,809 EBIT 29,521 Taxes @ 38% 11,218 Total 209,087 Total 209,087 Net Income 18,303      Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,907 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to grow by 25%. What is the pro-forma value for equity?...
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 63,252 Assets 122,852...
Consider the following recent financials for XYZ Corporation: Income Statement Balance Sheet Sales 63,252 Assets 122,852 Debt 28,164 Costs 37,951 Equity 94,688 EBIT 25,301 Taxes @ 38% 9,614 Total 122,852 Total 122,852 Net Income 15,687      Assets and costs are proportional to sales. Debt and equity are not. A dividend of $2,918 was paid, and the company wishes to maintain a constant payout ratio. Next year’s sales are projected to grow by 20%. What is the pro-forma value for equity?...
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes):   Income Statement...
Consider the following simplified financial statements for the Phillips Corporation (assuming no income taxes):   Income Statement Balance Sheet   Sales $25,000     Assets $10,000     Debt $4,600     Costs 13,200     Equity 5,400     Net income $11,800     Total $10,000     Total $10,000   Phillips has predicted a sales increase of 11 percent. It has predicted that every item on the balance sheet will increase by 11 percent as well. Required: Calculate the dividend paid. (Do not round your intermediate calculations.)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT