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 (30%)					3,060
Net income				$	7,140
Dividends	$	1,900
Addition to retained earnings		5,240

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
Taxable income
Taxes
Net income

Question2 What is the projected addition to retained earnings? (Do not round intermediate calculations.)

Addition to retained earnings