Question: Kenney Corporation recently reported the following income statement for 2012 (numbers are in millions of dollars): The company forecasts that its sales will increase by

 Kenney Corporation recently reported the following income statement for 2012 (numbers

Kenney Corporation recently reported the following income statement for 2012 (numbers are in millions of dollars): The company forecasts that its sales will increase by 10 percent in 2013 and its operating costs will increase in proportion to sales. The company's interest expense is expected to remain at exist200 million, and the tax rate will remain at 40 percent. The company plans to pay out 30 percent of its 2013 net income as dividends. What is the forecasted addition to retained earnings for 2013? A. exist1, 764 B. exist1, 140 C. exist1, 440 D. exist1, 260

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