Conn Man's Shops, a national clothing chain, had sales of $370 million last year. The business has a steady net prof percent and a dividend payout ratio of 25 percent. The balance sheet for the end of last year is shown. The firm's marketing staff has told the president that in the coming year there will be a large increase in the demand fo 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 comn retained earnings. No change is scheduled in the number of common stock shares outstanding, and retained earnings dictated by the profits and dividend policy of the firm. (Remember, the net profit margin is 6 percent)