Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2016, is shown here (millions of dollars):

Cash $3.5 Account payable $9.0

Receivables 26.0 Notes payable 18.0

Inventories 58.00 Line of credit 0

Total current assets $87.50 Accruals 8.5

Net fixed assets 35.0 Total current liabilities $35.5

Mortgage loan 6.0

Total assets $122.50 Common stock 15.0

Retained earnings 66.0

Total liabilities and equity $122.5

Sales for 2016 were $350 million and net income for the year was $10.5 million, so the firm's profit margin was 3.0%. Upton paid dividends of $4.2 million to common stockholders, so its payout ratio was 40%. Its tax rate was 40%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2017.