Big Test Inc. had sales last year of S100mm. Sales are expected to grow 20% next year. To support the new sales level, the production manager has indicated that fixed assets will need to increase by $30mm. Last year's balance sheet showed the following: Current assets - $20mm . Fixed assets - 590mm Accounts Payable 510mm Notes Payable - $20mm Long-term Liabilities $30mm Common Stock-$20mm Retained Earnings 550mm Assuming net margin will be 6% and that the retention ratio will be 25%, what is the forcast level of Retained Earnings for next year? (Note: use the standard assumptions from lecture) $31.8mm 533.6mm $34.8mm $37.2mm