Is this right?? And pls explain why is the addition to r/e in the question bit balance to net income? Thx

I Sqrer: 321200 cort: 15 s 2 1 1095 21231 18,814 5 not 1361 - Problem 3.4 Tares cono Ada ben 10 MIES.*! RED CORPORATION Income Statement Sales Cost Taxable income Taxes (20%) Net Income Dividend $5200 Addition to R/E 7.300 A 15% growth rate in sales is projected. Prepare a pro $28.000 forma income statement assuming cost vary with sales 9.700 18.300 and the dividend pay-out ratio is constant. What is the 5.490 projected addition to Retained Earnings? 12.810