Sustainable growth rate: Use the following pro forma information for Tomey Supply Company for next year: net income =

$563,012; addition to retained earnings = $377,218; common equity =

$884,845; net sales = $2,121,745. Assume that management does not want the ratio of long-term debt to equity to exceed the current longterm debt-to-equity ratio of 63 percent and also does not want to issue new equity. What level of sales growth can Tomey Supply Company sustain? Calculate the new sales at this level of sustainable growth.