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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 42,600 Costs 33,100 Taxable income $ 9,500 Taxes

Consider the following income statement for the Heir Jordan Corporation:

HEIR JORDAN CORPORATION Income Statement
Sales $ 42,600
Costs 33,100
Taxable income $ 9,500
Taxes (23%) 2,185
Net income $ 7,315
Dividends $ 2,100
Addition to retained earnings 5,215

The projected sales growth rate is 19 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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