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The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 43,100 Current assets $ 17,660 Long-term debt $
The most recent financial statements for Alexander Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 43,100 | Current assets | $ | 17,660 | Long-term debt | $ | 37,120 | |||
Costs | 35,600 | Fixed assets | 68,400 | Equity | 48,940 | ||||||
Taxable income | $ | 7,500 | Total | $ | 86,060 | Total | $ | 86,060 | |||
Taxes (22%) | 1,650 | ||||||||||
Net income | $ | 5,850 | |||||||||
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.) |
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