Question

Consider the following income statement for the Heir Jordan Corporation:_____.

HEIR JORDAN CORPORATION
Income Statement
Sales $ 48,200
Costs 34,000
Taxable income $ 14,200
Taxes (23%) 3,266
Net income $ 10,934
Dividends $ 3,600
Addition to retained earnings 7,334
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.)

Answer 1

The rest of the question and the answer are attached.

To get the percentages, the following formula was used;

= (Account/ Sales) * 100

For instance, for the Fixed Assets it was;

= (37,200/48,200) * 100

= 77.18%