Question
The most recent financial statement for alex co. is: Income statement sales- 45000 costs- 28800 taxable income- 16200 taxes (25%)- 16200 net income - 12150
The most recent financial statement for alex co. is:
Income statement
sales- 45000
costs- 28800
taxable income- 16200
taxes (25%)- 16200
net income - 12150
balance sheet
current assets- 70470
fixed assets- 38880
total assets- 109350
long term debt- 48600
equity- 60750
| Assets and costs are proportional to sales. The company maintains a constant 28 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? |
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Construction Contractors AICPA Audit And Accounting Guide
Authors: American Institute Of CPAs
1st Edition
0870519751, 978-0870519758
