Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement...
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Accounting
Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales Costs $48,500 34,500 Taxable income Taxes (25%) $ 14,000 3,500 Net income $ 10,500 Dividends Addition to retained earnings $2,900 7,600 The projected sales growth rate is 14 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant. (Input all answers 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
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