The balance sheet for the Heir Jordan Corporation follows. Based on this informa

Question

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. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.)

Explanation / Answer

HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales = Item Value /Sales *100 Percentage of Sales = Item Value /Sales *100   Assets   Liabilities and Owners’ Equity   Current assets   Current liabilities      Cash $2,650 5.43%       Accounts payable $2,400 4.92%      Accounts receivable $3,600 7.38%       Notes payable $5,300 0      Inventory $9,000 18.44%         Total $15,250 31.25%         Total $7,700 4.92%   Long-term debt $24,000 0   Owners’ equity       Common stock and paid-in surplus $18,000 0       Retained earnings $3,950 0   Fixed assets      Net plant and equipment $38,400 78.69%         Total $21,950 0   Total assets $53,650   Total liabilities and owners’ equity $53,650 Notes Payable as given in question has no link with sales. Long-Term Debt and Common Stock depends upon firm financing startegies and do not directly vary with sales.Retained earnings is related with sales only when increase in sales is capable of increasing revenue and additional retention income to the firm.

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