Sales and dividend payout ratio is constant

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Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 42,000 Costs 32,800 Taxable income $ 9,200 Taxes (35%) 3,220 Net income $ 5,980 Dividends $ 1,800 Addition to retained earnings 4,180 The projected sales growth rate is 10 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant.

Reference no: EM131324367

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