Percent of sales Method Suppose this years sales will total S32 million Next year, we forecast sales of S40 million Net income should be 5%o of sales Dividends should be 50%o of earnings。Percent of Sales Method • Suppose this year’s sales will total $32 million. • Next year, we forecast sales of $40 million. • Net income should be 5% of sales. • Dividends should be 50% of earnings