Southeast Airline had retained earnings of $2 million, sales of $4 million, and net income of $0.5 million this year. It also paid dividends of $0.2 million this year. If the sales are projected to increase by 10% next year, what are the projected retained earnings for next year? Assume that all ratios will stay constant.

Answer options

2.30 mill

2.33 mill

2.22 mill

2.20 mill