please write down the processes, step by step

2) The following balance sheet and income statement should be used: Taylor, Inc. 2009 Income Statement Net Sales Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and Taxes Less: Interest Paid Taxable Income Less: Taxes Net Income Dividends Additions to retained earnings $28,900 23,400 1.600 3,900 280 $ 3,620 1,230 $ 2,390 $956 $ 1,434 Cash Accounts rec Inventory Taylor, Inc. 2009 Balance Sheet $ 1,530 Accounts payable 2,780 Long-term debt 3.410 Common stock $ 7,720 Retained earnings 12.840 $20,560 Total liabilities & equity $ 2,750 4,000 8.000 Total 5.810 Net fixed assets Total assets $20,560 Taylor, Inc. is projecting sales to increase by 7% next year with the profit margin remaining constant. The firm is increasing the dividend payout ratio to 50 percent. What is the amount of the projected addition to retained earnings for next year? 2)