Problem 12-04 Sales Increase

Maggie's Muffins Bakery generated $4,000,000 in sales during 2016, and its year-end total assets were $2,200,000. Also, at year-end 2016, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking ahead to 2017, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 4%, and its payout ratio will be 45%. How large a sales increase can the company achieve without having to raise funds externallythat is, what is its self-supporting growth rate? Do not round intermediate calculations. Round your answers to the nearest whole.

Sales can increase by $ , that is by %.

Problem 12-04 Sales Increase Maggie s Muffins Bakery generaced4,000,000 sal s dun g 2016, and its year-end total assets were s2,200,000. Also, t year-end 2016, current liabilities were S1,000,000 cons stin of $300,000 af nates payable, S500 000 of accounts payable d s200 000 o accrual, Looking ahead to 2017,e company estimates that its assets must increase at the same rate as sale5, its spontaneous liabilities will increase at the same rate s sales its profit margin will be 4%, and its payout atio will be 45% How large a sa es increase can he car any achieve without having to raise unds mterna y hat IS hat S its self-supporting grawth rate? o not round intermediate ra cula ins Round aur nswers to the nearest whole ts year-e Sal es can Increase by that Is by