Question
Consider the following income statement for the Heir Jordan Corporationstate for the Heir Jordan Corporation Heir Jordan CoportationIncome Statement Sales$47, 000 Cost$31, 300 Taxable Income$
Consider the following income statement for the Heir Jordan Corporationstate for the Heir Jordan Corporation
Heir Jordan CoportationIncome Statement
Sales$47, 000
Cost$31, 300
Taxable Income$ 15, 700
Taxes(35%)5,495
Net Income $10, 205
Dividends $2,500
Addition to retained earnings $7, 705
A 20% growth rate in sales is projected.
Prepare a Pro forma income statement assuming costs vary with sales.
Pro Forma Income Statement
Sales $
Costs $
Taxable Income $
Taxes$
Net Income$
What is the projected addition to retained earnings?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
