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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 49,000 Costs 40,300 Taxable income $ 8,700 Taxes
Consider the following income statement for the Heir Jordan Corporation: |
HEIR JORDAN CORPORATION Income Statement | ||||||
Sales | $ | 49,000 | ||||
Costs | 40,300 | |||||
Taxable income | $ | 8,700 | ||||
Taxes (22%) | 1,914 | |||||
Net income | $ | 6,786 | ||||
Dividends | $ | 2,400 | ||||
Addition to retained earnings | 4,386 | |||||
A 20 percent growth rate in sales is projected. |
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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