Question: 9. Kenney Corporation recently reported the following income statement for 2004 (numbers are in millions of dollars): Sales $17,000 Total operating costs 8,000 EBIT $9,000

9. Kenney Corporation recently reported the following income statement for 2004

9. Kenney Corporation recently reported the following income statement for 2004 (numbers are in millions of dollars): Sales $17,000 Total operating costs 8,000 EBIT $9,000 Interest Earnings before tax (EBT) $8,600 Taxes (30%) 2.580 Net income available to common shareholders $6,020 400 The company forecasts that its sales will increase by 10 percent in 2021 and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at $400 million, and the tax rate will decrease to 20 percent. The company plans to pay out 60 percent of its net income as dividends. What is the forecasted addition to retained earnings for 2021? ( 2points)

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