Bracken corporation budgets the following for 2015

Question

Bracken Corporation budgets the following for 2015 operations:

Sales                                              $800,000

Cost of Goods Sold                        60%

Bad Debts                                        2%

Sales Commissions                         8%

Fixed Selling and Admin Exp.        $ 90,000

Depreciation                                   $ 50,000

Tax Rate                                          30%

Dividend Payout Ratio                     50%

Retained Earnings on 1/1/2015     $ 125,000

1. Budgeted Net Income for 2015 is?

2. Budgeted Retained Earnings on 12/31/2015 is?