Sales and the 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 $ 46,800 Costs 36,200 Taxable income $ 10,600 Taxes (35%) 3,710 Net income $ 6,890 Dividends $ 3,400 Addition to retained earnings 3,490 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. HEIR JORDAN CORPORATION Pro Forma Income Statement Sales $ Costs Taxable income $ Taxes Net income $ What is the projected addition to retained earnings? Retained earnings $

Reference no: EM131025514

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