Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales				$	45,900
Costs					35,400
Taxable income				$	10,500
Taxes (30%)					3,150
Net income				$	7,350
Dividends	$	2,500
Addition to retained earnings		4,850

The projected sales growth rate is 12 percent.

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

HEIR JORDAN CORPORATION Pro Forma Income Statement
Sales	$
Costs
Taxable income	$
Taxes
Net income	$

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

Addition to retained earnings

$