Intro Model Corp.'s most recent balance sheet and income statement are given below (all numbers in $ million): Assets Cash 37 Accounts receivable 74 Inventory 111 Current assets 222 Machinary 148 Total assets 370 Liabilities and Equity Accounts payable 111 Current liabilities 111 Long-term debt 148 Total liabilities 259 Equity Total liab. & equity 370 111 Income statement Sales Costs Depreciation EBIT Interest Taxable income Taxes Net income 7.4 8.6 2.924 5.68 Sales, assets and costs (including depreciation) are expected to grow by 40% next year, while the tax rate and long-term debt will stay constant. The company pays out 40% of net income as dividends. Part 1 18 Attempt 3/10 for 6 pts. Using the percentage of sales method, what will be the net income next year (in $ million)? 1+ decima Submit