Question

Consider the following income statement for the Heir Jordan Corporation: Income Statement Sales $49252 Costs $36892...

Consider the following income statement for the Heir Jordan Corporation:

Income Statement
Sales $49252
Costs $36892
Taxable Income ?
Taxes (35%) ?
Net Income ?
Dividends $1385

The projected sales growth rate is 13 percent.

What is the projected addition to retained earnings (in $)? Assume costs vary with sales and the dividend payout ratio is constant.

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