Keep the Highest: 12 4. Problem 16.04 Click here to read the eBook: Forecasted Financial Statements PRO FORMA INCOME STATEMENT Austin Grocers recently reported the following 2016 income statement (in millions of dollars): Sales $700 Operating costs including depreciation 500 EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net Income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 30% increase in sales, and it expects that its year-end operating ax rate, interest expense, and dividend payout ratio are all expected to remain constant a. What is Austin's projected 2017 net income? Enter your answer in millions. For example, an answer of $15 decimal places. million Sales 500 dollars): $700 Operating costs including depreciation EBIT $200 Interest 40 EBT $160 Taxes (40%) 64 Net Income $96 Dividends $32 Addition to retained earnings $64 For the coming year, the company is forecasting a 30% increase in sales, and it expects that its year-end operating costs, inclu tax rate, interest expense, and dividend payout ratio are all expected to remain constant. a. What is Austin's projected 2017 net income? Enter your answer in millions. For example, an answer of 513,000,000 = decimal places million b. What is the expected growth rate in Austin's dividends? Do not round your intermediate calculations. Round your answ % Grade It Now Save & Continue MacBook Air asted Financial Statements ET following 2016 Income statement (in millions of dollars): $700 luding depreciation 500 $200 40 $160 64 $96 $32 $64 d earnings Is forecasting a 30% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 65% of sales. Austin's dend payout ratio are all expected to remain constant 2017 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 wth rate in Austin's dividends? Do not round your intermediate calculations. Round your answer to two decimal places