1) Macrofrost, Corp. has current sales of $65,300, dividends paid of $2,300, net income of $7,500, interest expense of $1,860, and EBIT of $12,100. Assume the dividend payout ratio, debt-equity ratio, and profit margin remain the same. What is the projected change to retained earnings for the next year if sales are estimated to increase by $8,700 next year?

2) FRUIST, Inc. has a profit margin of 6 percent and current revenues of $18,000. The company expects that revenues will increase by 9 percent next year. Assuming that all costs vary in direct relationship to revenues, what is the pro forma net income for the next year?