10. Applying Percentage of Sales [LO1] 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 "n/a" where needed. HEIR JORDAN CORPORATION Balance Sheet Assets Liabilities and Owners' Equity $ Percentage $ Percentage of Sales of Sales Current Current liabilities assets Cash $2,950 4,100 Accounts receivable Inventory Total Accounts $2,400 payable Notes 5,400 payable Total $7,800 Long-term $28,000 debt 6,400 $13,450 Fixed assets Net plant $41,300 and equipment Owners' $15,000 equity Common stock and paid-in surplus Retained 3,950 earnings Total $18,950 Total $54,750 liabilities Total assets $54,750 and owners' equity 9. Calculating Retained Earnings from Pro Forma Income (L01] Consider the following income statement for the Heir Jordan Corporation: tion 7501 of 43194 MacBook Pro HEIR JORDAN CORPORATION Income Statement Sales $49,000 Costs 40,300 $ 8,700 Taxable income Taxes (22%) 1,914 Net income $ 6,786 Dividends $2,400 4,386 Addition to retained earnings A 20 percent growth rate in sales is projected. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. What is the projected addition to retained earnings