Speedy Motors is trying to forecast to 2022. Their current sales are $16 million, COGS are 30% of sales, operating expenses 40% of sales, interest expense 1% of sales and depreciation expense $100,000. Tax 40%, dividend payout 20%. 1 million shares stock.

What is their net profit margin? Show work.

Continuing with Speedy Motors, they expect a growth rate of 20% in 2022. Using the proforma method of forecasting, what is their anticipated 2022 retained earnings if depreciation amount and dividend payout percentage stay the same? Show work.