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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 4 3 , 8 0 0 Costs 3

Consider the following income statement for the Heir Jordan Corporation:
HEIR JORDAN CORPORATION
Income Statement
Sales $ 43,800
Costs 34,800
Taxable income $ 9,000
Taxes (22%)1,980
Net income $ 7,020
Dividends $ 3,300
Addition to retained earnings 3,720
The projected sales growth rate is 18 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g.,32.)
What is the projected addition to retained earnings? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g.,32.)

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