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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 43,200 Costs 34,000 Taxable income $ 9,200 Taxes
Consider the following income statement for the Heir Jordan Corporation: |
HEIR JORDAN CORPORATION Income Statement | ||||||
Sales | $ | 43,200 | ||||
Costs | 34,000 | |||||
Taxable income | $ | 9,200 | ||||
Taxes (24%) | 2,208 | |||||
Net income | $ | 6,992 | ||||
Dividends | $ | 2,700 | ||||
Addition to retained earnings | 4,292 | |||||
The projected sales growth rate is 13 percent. |
Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers as positive values. Do not round intermediate calculations.) |
What is the projected addition to retained earnings? (Do not round intermediate calculations.) |
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