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The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales 50,000 Current assets $ 24,000 Long-term debt $ 54,500
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales 50,000 Current assets $ 24,000 Long-term debt $ 54,500 60,500 Costs Taxable income 12,000 Total Taxes (34%) 4,080 38,000 Fixed assets91,000 Equity $115,000 Total $115,000 Net income 7,920 Assets and costs are proportional to sales. The company maintains a constant 40 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Maximum increase in sales
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