Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales				$	45,000
Costs					35,000
Taxable income				$	10,000
Taxes (35%)					3,500
Net income				$	6,500
Dividends	$	1,600
Addition to retained earnings		4,900

The projected sales growth rate is 18 percent.

Question 1 : 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

Question 2:What is the projected addition to retained earnings? (Do not round intermediate calculations.)

Addition to retained earnings