Austin Grocers recently reported the following 2019 income statement (in millions of dollars):

Sales$700Operating costs including depreciation500EBIT$200Interest40EBT$160Taxes (25%)40Net income$120Dividends$40Addition to retained earnings$80

For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 75% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.

1. What is Austin's projected 2020 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Round your answer to two decimal places.

1. What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places.

At year-end 2019, total assets for Arrington Inc. were $1.5 million and accounts payable were $355,000. Sales, which in 2019 were $2.50 million, are expected to increase by 25% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained; that is, they will grow at the same rate as sales. Arrington typically uses no current liabilities other than accounts payable. Common stock amounted to $435,000 in 2019, and retained earnings were $320,000. Arrington plans to sell new common stock in the amount of $90,000. The firm's profit margin on sales is 5%; 60% of earnings will be retained.

1. What were Arrington's total liabilities in 2019? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent.

1. How much new long-term debt financing will be needed in 2020? (Hint: AFN - New stock = New long-term debt.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent.

Earleton Manufacturing Company has $2 billion in sales and $718,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity.

1. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answers completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.

1. What is Earleton's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places.

1. If Earleton's sales increase 35%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round intermediate calculations. Round your answer to the nearest dollar.