Samson's Sailboats Inc. recently reported the following income statement (in millions of dollars):

2018

Sales$3,500

Operating costs2,500

EBIT$1,000

Interest200

EBT $800

Taxes (40%)320

Net income $480

Dividends (40%) $

Addition to retained earnings $

This year the company is forecasting a 40% increase in sales, and it expects that its year end operating costs will decline to 60% of sales. Samson's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.

What is Samson's projected 2019 Net Income?

What is the projected 2019 paid out Dividend?

What is the forecasted addition to Retained Earnings to 2019?

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Kenney Corporation recently reported the following income statement for 2013 (numbers are in millions of dollars):

20182019

Sales$ 7,000

Operating costs 3,000

EBIT$ 4,000

Interest 200

Earnings before taxes (EBT)$ 3,800

Taxes (40%)1,520

Net income available to common shareholders$ 2,280

The company forecasts that its sales will increase by 10% in 2019 and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at $200 million, and the tax rate will remain at 40%. The company plans to pay out 50% of its net income as dividends, the other 50% will be additions to retained earnings.

1. What is Kenney's projected 2019 Net Income?
2. What is the projected 2019 paid out Dividend?
3. What is the forecasted addition to Retained Earnings to 2019?