1. Jordan and Company had a balance in their retained earnings account at the end of 2022 in the amount of 1,500,000. They have forecasted net income in 2023 in the amount of 400,000. They pay an estimated 40% of their net income in dividends. What will be the addition to retained earnings at the end of 2023?
2. Given the same information in #1, what will be the ending balance in retained earnings at the ends of 2023?