The most recent financial statements for Fontenot Co. are shown here:

Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debt–equity ratio. What is the maximum increase in sales that can be sustained assuming no new equity is issued? 

Income Statement Balance Sheet Sales $54,000 Current assets $ 31,000 Long-term debt $ 68,000 Costs 39,300 Fixed assets 118,000 Equity 81,000 Taxable income $14,700 Total $149,000 Total $149,000 Taxes (34%) 4,998 Net income $ 9,702