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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement   Sales...

Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
  Sales $ 43,200
  Costs 34,000
  Taxable income $ 9,200
  Taxes (24%) 2,208
  Net income $ 6,992
     Dividends $ 2,700
     Addition to retained earnings 4,292

The projected sales growth rate is 13 percent.

Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers as positive values. Do not round intermediate calculations.)

What is the projected addition to retained earnings? (Do not round intermediate calculations.)

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jeff jeffy answered 1 year ago
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