Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION
Income Statement
Sales $45,600
Costs 35,200
Taxable income $10,400
Taxes (22%) 2,288
Net income $8,112
Dividends $2,200
Addition to retained earnings 5,912 The projected sales growth rate is 18 percent. Prepare a pro forma income statement assuming costs vary with sales and the dividend payout ratio is constant.