Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Inc

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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION
Income Statement   Sales $ 43,500   Costs 34,100   Taxable income $ 9,400   Taxes (24%) 2,256   Net income $ 7,144      Dividends $ 3,000      Addition to retained earnings 4,144

The projected sales growth rate is 15 percent.

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

What is the projected addition to retained earnings? Sales Costs Taxable income Taxes Net Income