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Prepare a pro forma income statement assuming all costs vary with sales and the dividends payout ratio is constant. A 35% growth rate in sales

Prepare a pro forma income statement assuming all costs vary with sales and the dividends payout ratio is constant.

A 35% growth rate in sales is projected. What are the projected additions to retained earnings?

ABC Company Income Statement

Sales $57,000

Costs $41,300

Taxable Income $15,700

Taxes (34%) $5,338

Net Income $10,362

Dividends $5,181

Additions to Retained Earnings $5,181

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