Transcribed Image Text
Austin Grocers recently reported the following 2019 incomestatement (in millions of dollars):Sales$700Operating costs including depreciation500EBIT$200Interest40EBT$160Taxes (25%)40Net income$120Dividends$40Addition to retained earnings$80For the coming year, the company is forecasting a 30% increasein sales, and it expects that its year-end operating costs,including depreciation, will equal 65% of sales. Austin's tax rate,interest expense, and dividend payout ratio are all expected toremain constant.What is Austin's projected 2020 net income? Enter your answerin millions. For example, an answer of $13,000,000 should beentered as 13. Round your answer to two decimal places.$ millionWhat is the expected growth rate in Austin's dividends? Do notround intermediate calculations. Round your answer to two decimalplaces. %