options- a. 218.03 b. 630.74 c. 466.67 d. 516.06 e. 1146.80

Rondolo, Inc. 2015 Income Statement ($ in millions) Net Sales Less: Cost of Goods Sold Less: Depreciation Earnings Before Interest and Taxes Less: Interest Paid Taxable income Less: Taxes Net Income Dividends Additions to retained earnings $12,800 10,400 680 1,720 280 $1,440 500 $940 $4231 $517 Cash Accounts rec Inventory Total Net fixed assets Total assets Rondolo, Inc. 2015 Balance Sheet ($ in millions) $520 Accounts payable 1,080 Long-term debt 3.120 Common stock $4,720 Retained earnings 7.480 $12.200 Total liabilities & equity $1,810 3,600 5,000 1.790 $12.200 Assume that the profit margin and the dividend payout ratio of Rondolo, Inc, are constant. If sales increase by 22%, what is the projected addition to retained earnings ($ in millions)? Multiple Choice $218.03