Assuming costs vary with sales and dividend payout ratio

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Reference no: EM131950270

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 47,900 Costs 33,900 Taxable income $ 14,000 Taxes (35%) 4,900 Net income $ 9,100 Dividends $ 2,300 Addition to retained earnings 6,800 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. (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 $ What is the projected addition to retained earnings? (Do not round intermediate calculations.) Addition to retained earnings $

Reference no: EM131950270

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