Problem $2-38$ Income Statement $($LG$2-1)$

You have been given the following information for PattyCake's Athletic Wear Corp. for the year $2021$:

a$.$ Net sales $=$$$38,400,000.$

b$.$ Cost of goods sold $=$$$22,120,000.$

c$.$ Other operating expenses $=$$$5,400,000.$

d$.$ Addition to retained earnings $=$$$1,200,500.$

e$.$ Dividends paid to preferred and common stockholders $=$$$1,918,000.$

f$.$ Interest expense $=$$$1,800,000.$

g$.$ The firm's tax rate is $30$ percent.

In $2022$:

h$.$ Net sales are expected to increase by $$9\mathrm{.}40$ million.

i$.$ Cost of goods sold is expected to be $60$ percent of net sales.

j$.$ Depreciation and other operating expenses are expected to be the same as in $2021.$

k$.$ Interest expense is expected to be $$2,075,000.$

I. The tax rate is expected to be $30$ percent of EBT.

$m.$ Dividends paid to preferred and common stockholders will not change.

Calculate the addition to retained earnings expected in $2022.($Enter your answer in dollars, not millions.$)$