You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2015: 

a. Net sales = $38,250,000; 

b. Cost of goods sold = $22,070,000;

c. Other operating expenses = $5,300,000;

d. Addition to retained earnings = $1,195,500;

e. Dividends paid to preferred and common stockholders = $1,912,000;

f. Interest expense = $1,785,000; 

g. The firm’s tax rate is 30 percent; 

h. In 2016, net sales are expected to increase by $9.75 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 2015;

k. Interest expense is expected to be $2,004,286;

l. 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 2016.