19.1. Mars company had net sales of $18 million in the year that just ended. Next year, the companys management expects a 15 percent increase in sales. If cost of goods sold is 60 percent of sales and inventory is 25 percent of sales, what would you estimate sales, inventory, and cost of goods sold to be next year?

19.2. Lavaca Inc. management expects net sales to be $855,000, total costs to be $647,000, and to pay taxes at an average rate of 32 percent this year. If the Lavaca pays out 38 percent of its earnings as dividends, what is its retention ratio? How much will Lavacas retained earnings increase?