Problem $2-34$ Income Statement $($LG$2-1)$

You have been given the following information for PattyCake's Athletic Wear Corporation for the year:

a$.$ Net sales $=$$$38,800,000.$

b$.$ Cost of goods sold $=$$$22,200,000.$

c$.$ Other operating expenses $=$$$6,200,000.$

d$.$ Addition to retained earnings $=$$$1,208,500.$

e$.$ Dividends paid to preferred and common stockholders $=$$$1,938,000.$

f$.$ Interest expense $=$$$1,840,000.$

g$.$ The firm's tax rate is $30$ percent.

Next year:

h$.$ Net sales are expected to increase by $$9\mathrm{.}80$ million.

i$.$ Cost of goods sold is expected to be $60$ percent of net sales.

j$.$ Depreciation and other operating expenses are expected to be the same as in the last year.

k$.$ Interest expense is expected to be $$2,115,000.$

I. The tax rate is expected to be $30$ percent of EBT.

$m.$ Dividends paid to preferred and common stockholders will not change.

Calculate the addition to retained earnings expected next year.

Note: Enter your answers in millions of dollars. $($i$.$e$.,$ Enter $10,000,000$ as $10.)$

Addition to retained earnings