projected retained earings + discretionary financing

Use the following information and the percent-of-sales method to answer the following questions). Below is the 2014 year-end balance sheet for Banner, Inc. Sales for 2014 were $1,600,000 and are expected to be $2,000,000 during 2015. In addition, we know that Banner plans to pay $90,000 in 2015 dividends and expects projected net income of 4% of sales. (For consistency with the Answer selections provided, round your forecast percentages to two decimals.) Banner, Inc. Balance Sheet December 31, 2014 Assets Current assets $890,000 Net fixed assets 1.000.000 Total $1.890.000 Liabilities and Owners' Equity Accounts payable $160,000 Accrued expenses 100,000 Notes payable 700,000 Long-term debt 300.000 Total liabilities 1.260.000 Common stock (plus paid-in capital) 360,000 Retained earnings 220.000 Common equity 630.000 Total 1.890.000 source was aseHero.com 5) Banner's projected retained earnings for 2015 are A) $260,000. B) $280,000 C) $350,000 D) $340,000 6) Banner's projected discretionary financing needed for 2015 is A) $360,000 B) $420,000. C) 5440,000 D) $370,000