$\quad$ $\quad$ $\quad$ $\quad$ Oscar's Incredible Eatery (\$ Thousands)

$\quad$ $\quad$ $\quad$ $\quad$ Oscar's Incredible Eatery (\$ thousands)
$\quad$ $\quad$ Income Statement for the year ending Dec. 31, 2014
$\begin{array}{lr}\hline \text { Net sales } & 17,300 \\\text { Cost of goods sold } & 10,600 \\\text { Depreciation } & \underline{3,250 }\\\text { Earnings before interest and taxes } & 3,450 \\\text { Interest expense } &\underline{ 680 }\\\text { Earnings before tax } & 2,770 \\\text { Tax } &\underline{ 940} \\\text { Earnings after tax } & 1,830 \\\text { Dividends } & 450\end{array}$

$\quad$ $\quad$ $\quad$ $\quad$$\text { Balance Sheet as of Dec. } 31,2014$
$\begin{array}{lrlr}\text { Cash } & 350 & \text { Accounts payable } & 1,920 \\\text { Accounts receivable } & 940 & \text { Long-term debt } & 3,500 \\\text { Inventory } &\underline{ 2,360 }& \text { Common stock } & 7,500 \\ \text { Total current assets } & 3,650 & \text { Retained earnings } & 1,580 \\\text { Net fixed assets } & 10,850 &&---\\\text {Total assets}&14.500&\text {Total liab. \& equity}&14,500 \\\hline\end{array}$

-Please refer to Oscar's financial statements above.Sales are projected to increase by 3 percent next year.The profit margin and the dividend payout ratio are projected to remain constant.What is the projected addition to retained earnings for next year?

A) $1,309.19
B) $1,421.40
C) $1,884.90
D) $2,667.78
E) $3,001.40