$ 3,950 14,700 Accounts payable Long-term debt Common stock ($1 par value) Retained earnings Total Liab. & Equity 12,500 8,250 $39,400 This firm is currently operating at 88 percent of capacity. The profit margin and the dividend payout ratio are projected to remain constant. Sales are projected to increase by 6 percent next year. What is the projected addition to retained earnings for next year? $3,074 $2,705 $2,152 $1,890 $2,309 Income Statement For the Year Sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes $36,200 27,900 2,950 $ 5,350 1,180 $ 4,170 1,270 $ 2,900 Net income Dividends $870 Balance Sheet End-of-Year Cash $ 350 Accounts receivable 3,150 Inventory Total current assets Net fixed assets Total assets 8,300 $11,800 27,600 $39,400