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onsider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 45,300 Costs 35,100 Taxable income $ 10,200 Taxes
onsider the following income statement for the Heir Jordan Corporation: |
HEIR JORDAN CORPORATION Income Statement | ||||||
Sales | $ | 45,300 | ||||
Costs | 35,100 | |||||
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Taxable income | $ | 10,200 | ||||
Taxes (30%) | 3,060 | |||||
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Net income | $ | 7,140 | ||||
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Dividends | $ | 1,900 | ||||
Addition to retained earnings | 5,240 | |||||
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The projected sales growth rate is 15 percent. |
Question1 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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Question2 What is the projected addition to retained earnings? (Do not round intermediate calculations.) |
Addition to retained earnings |
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