Accounting Review Help:

The most recent financial statements for Smile Bright Corp., are shown below:

Income Statement:		Balance Sheet:
Sales	$50,000	Current assets	$78,300	Long-term debt	$54,000
Costs	32,000	Fixed assets	43,200	Equity	67,500
Taxable income	$18,000	Total	$121,500	Total	$121,500
Taxes (33%)	5,940
Net income	$12,060

Assets and costs are proportional to sales.

The company maintains a constant 40% dividend payout ratio and a constant debtequity ratio.

What is the maximum increase in sales that can be sustained assuming no new equity is issued?

(Do not round your intermediate calculations.)

• $3,166.35

• $6,103.58

• $6,003.58

• $5,903.58

• $3,848.36