CHALLENGE Baldwin Products Company anticipates reaching a sales level of $$6$ million in one year. The company expects earnings after taxes during the next year to equal $$400,000.$ During the past several years, the company has been paying $$50,000$ in dividends to its stockholders. The company expects to continue this policy for at least the next year. The actual balance sheet and income statement for Baldwin during $2016$ follow.

Baldwin Products Company Balance Sheet as of December $31,2016$

$\backslash$table$[[$Cash$,$$$200,000,$Accounts payable,$$600,000$