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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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