Prepare a pro forma balance sheet

Assignment Help Managerial Accounting
Reference no: EM133074416

Question - 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 (22%) 3,080 Net income $ 10,920 Dividends $ 2,517 Addition to retained earnings 8,403 The balance sheet for the Heir Jordan Corporation follows. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 2,650 Accounts payable $ 2,400 Accounts receivable 3,600 Notes payable 5,300 Inventory 9,000 Total $ 7,700 Total $ 15,250 Long-term debt $ 24,000 Owners' equity Fixed assets Common stock and paid-in surplus $ 18,000 Net plant and equipment $ 38,400 Retained earnings 3,950 Total $ 21,950 Total assets $ 53,650 Total liabilities and owners' equity $ 53,650

Prepare a pro forma balance sheet, assuming an increase in sales of 12 percent, no new external debt or equity financing, and a constant payout ratio. Calculate the EFN.

Reference no: EM133074416

Questions Cloud

Understanding of a concept - Family centered care : What themes are most prevalent? What are the supports and barriers to a family centred-care practice in the area of nursing you work in
Estimated value of a share of common stock : You are offered a contract with a signing bonus. If they offered you either $215,000 in cash or $2,000 a month for 15 years, guaranteed, which do you take (base
What is the bond price : 1. A 6.50% coupon bond with 18 years left to maturity is offered for sale at $1,035.25. What yield to maturity [interest rate] is the bond offering?
Development and production of silver mining : The Concord Silver Company ("Concord") is a silver mining company engaged in the exploration, development and production of silver mining throughout Canada
Prepare a pro forma balance sheet : Prepare a pro forma balance sheet, assuming an increase in sales of 12 percent, no new external debt or equity financing, and a constant payout ratio
What is the value of one share of bb stock : Question: The BB Corporation paid its first dividend yesterday of $3/share. BB is expected to be able to grow dividends at 9% for the next two years (i.e., betw
Prepare the journal entry on the date the bonds were issued : On July 1, 2020, Peanuts Inc. issued $400,000 (par value) 10%, ten year bonds, Prepare the journal entry on the date the bonds were issued
What is the npv of the new product : Demo Products, Inc., is considering a new product launch. The ?rm expects to have annual operating cash ?ow of $4.9 million for the next eight years.
Interest rate differential and of the exchange rate : It is announced today (time t) that the interest rate in Europe will be reduced by 1% for one period starting today (time t), and that it will increase back 1%

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine operating income using variable-costing approach

Non-manufacturing costs incurred in the production of 30,000 units: Determine operating income using variable-costing approach

  How relevant is managerial accounting for a firm decision

How relevant is managerial accounting for a firm's decision making process? Is managerial accounting more than just estimating a cost for financial accounting

  Explain the statement - accuracy of information is important

Explain the statement: "Accuracy of information is important but the timeliness of information is focused in management accounting."

  Should golden company accept the offer

If the outside supplier offers to sell glups for $65 each, should Golden Company accept the offer? Should the center be closed?

  Find why do organizations adjust the financial statements

Find Why do organizations adjust their financial statements? What are some common adjustments? What effect can adjustments have on an organization

  ACC00724 Accounting for Managers Assignment

ACC00724 Accounting for Managers Assignment Help and Solution, Southern Cross University - Assessment Writing Service - Calculate appropriate liquidity

  Find and develop the standard cost for direct cost component

Find and Develop the standard cost for the direct cost components of a 10-gallon batch of raspberry sherbet. For each direct cost component

  Create general journal entries to record purchase of land

Sage Ltd. purchased land $400,000 and buildings $250,000.Create general journal entries to record the purchase of land, buildings and machinery during the year.

  Prepare a production budget for each of months of september

Prepare a production budget for each of the months of September, October, and November. Blue Wave Co. predicts the unit sales for the coming four months.

  Calculating a manufacturing overhead rate

Why is budgeted manufacturing overhead, rather than actual overhead, used when calculating a manufacturing overhead rate

  How many planes does doghayneed to sell

How many planes does Doghayneed to sell in order to break-even? what strategies Doghaymight use to ensure profitable operations with increase in variable costs?

  Determine the total cost that should have been recorded

Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on March 21

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd