Consider the following income statement for the Heir Jordan Corporation state for the Heir Jordan Corporation Heir Jordan Coportation Income

Consider the following income statement for the Heir Jordan Corporation state for the Heir Jordan Corporation 

 Heir Jordan Coportation Income Statement

Sales  $47, 000

Cost   $31, 300

Taxable Income   $ 15, 700

Taxes(35%)  5,495

Net Income $10, 205

Dividends $2,500

Addition to retained earnings $7, 705

A 20% growth rate in sales is projected. 

Prepare a Pro forma income statement assuming costs vary with sales.

Pro Forma Income Statement

Sales $

Costs $

Taxable Income $

Taxes$

Net Income$

What is the projected addition to retained earnings?