assume that accounts payable vary with sales whereas notes payable do not put where 556287

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.

HEIR JORDAN CORPORATION

Balance Sheet

$

Percentage of Sales

$

Percentage of Sales

Assets

Liabilities and Owners’ Equity

Current assets

Current liabilities

Cash

$ 3,525

Accounts payable

$ 3,000

Accounts receivable

7,500

Notes payable

7,500

Inventory

6,000

Total

$10,500

Total

$17,025

Long term debt

$19,500

Fixed assets

Owners’ equity

Net plant and

Common stock and paid in surplus

$15,000

equipment

$30,000

Retained earnings

2,025

Total assets

$47,025

Total

$17,025

Total liabilities and owners’ equity

$47,025

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