Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales				$	43,500
Costs					34,100
Taxable income				$	9,400
Taxes (24%)					2,256
Net income				$	7,144
Dividends	$	3,000
Addition to retained earnings		4,144

The projected sales growth rate is 15 percent.

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?

Sales
Costs
Taxable income
Taxes
Net Income