Answer:
$26,294.75
Explanation:
Next years estimated total sales = $672,500
profit margin 4.6% of total estimated sales = 4.6% x $672,500 = $30,935
dividend payout ratio 15% of net income = $30,935 x 15% = $4,640.25
increase in retained earnings = net income - distributed dividends = $30,935 - $4,640.25 = $26,294.75
