Question
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 50,200 Current assets $ 24,600 Long-term debt $
The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 50,200 Current assets $ 24,600 Long-term debt $ 41,000 Costs 38,100 Fixed assets 92,000 Equity 75,600 Taxable income $ 12,100 Total $ 116,600 Total $ 116,600 Taxes (34%) 4,114 Net income $ 7,986 Assets and costs are proportional to sales. The company maintains a constant 25 percent dividend payout ratio and a constant debtequity 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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