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Conn Man's Shops, a national clothing chain, had a sales of $ 3 1 0 million last year. The business has a steady net profit

Conn Man's Shops, a national clothing chain, had a sales of $310 million last year. The business has a steady net profit margin of 5 percent and a dividend payout of 20 percent. The balance sheet for the end of last year is shown. The firm's marketing staff has told the president that in coming year there will be a large increase in the demand for overcoats and wool slacks. A sales increase of 10 percent is forecast for the company. All balance sheet items are expected to maintain the same percent of sales relationships as last year except for common stock and retained earnings. No change is scheduled in the number of common stock shares outstanding, and retained earnings will change as dictated by the profits and dividend policy of the firm.

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