The Optimal Scam Company would like to see its sales grow at 20% for the foreseeable future. Its financial statements for the current year are presented below. Income Statement (\$ millions) Sales 32.00 Costs 28.97 Gross profit 3.03 Taxes 1.03 Net income 2.00 Dividends 1.40 Retained earnings 0.60 Balance Sheet ( $ millions) Current assets 16 Fixed assets 16 Total assets 32 Accounts payable 4 Notes payable 6 Long-term debt 4 Total debt 10 Common stock 14 Ret. Earnings 4 Common stock 14 Ret. Earnings 4 Total liabilities and equity 32 The current financial policy of the optimal scam company includes Dividend payout ratio (d)=70% Costs, other expenses, current assets, fixed assets, and accounts payable increase spontaneously with sales. The firm is operating at full capacity and no new debt or equity is issued. Use the information given above and the projected sales growth to calculate retained earnings next year