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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 43,500 Costs 34,100 Taxable income $ 9,400 Taxes
| Consider the following income statement for the Heir Jordan Corporation: |
| HEIR JORDAN CORPORATION Income Statement | ||||||
| Sales | $ | 43,500 | ||||
| Costs | 34,100 | |||||
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| Taxable income | $ | 9,400 | ||||
| Taxes (35%) | 3,290 | |||||
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| Net income | $ | 6,110 | ||||
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| Dividends | $ | 3,000 | ||||
| Addition to retained earnings | 3,110 | |||||
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| The projected sales growth rate is 10 percent. |
| Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all amounts as positive values. Do not round intermediate calculations.) |
| HEIR JORDAN CORPORATION Pro Forma Income Statement | |
| Sales | $ |
| Costs | |
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| Taxable income | $ |
| Taxes | |
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| Net income | $ |
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| What is the projected addition to retained earnings? (Do not round intermediate calculations.) |
| Addition to retained earnings | $ |
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