Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales				$	45,600
Costs					35,200
Taxable income				$	10,400
Taxes (35%)					3,640
Net income				$	6,760
Dividends	$	2,200
Addition to retained earnings		4,560

The projected sales growth rate is 10 percent.

Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant.

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

What is the projected addition to retained earnings?

Retained earnings

$