Applying Percentage of Sales
The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement in the previous= problem, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. Put &where needed.
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HEIR JORDAN CORPORATION Balance Sheet |
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$ |
Percentage of Sales |
$ |
Percentage of Sales |
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Assets |
Liabilities and Owners’ Equity |
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Current assets |
Current liabilities |
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Cash |
$ 3,525 |
Accounts payable |
$ 3,000 |
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Accounts receivable |
7,500 |
Notes payable |
7,500 |
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Inventory |
6,000 |
Total |
$10,500 |
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Total |
$17,025 |
Long term debt |
$19,500 |
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Fixed assets |
Owners’ equity |
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Net plant and |
Common stock and paid in surplus |
$15,000 |
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equipment |
$30,000 |
Retained earnings |
2,025 |
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Total assets |
$47,025 |
Total |
$17,025 |
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Total liabilities and owners’ equity |
$47,025 |
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