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The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 44,900 Current assets $ 18,620 Long-term debt $
The most recent financial statements for Alexander Co. are shown here:
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 44,900 | Current assets | $ | 18,620 | Long-term debt | $ | 37,720 | |||
Costs | 36,200 | Fixed assets | 69,000 | Equity | 49,900 | ||||||
Taxable income | $ | 8,700 | Total | $ | 87,620 | Total | $ | 87,620 | |||
Taxes (24%) | 2,088 | ||||||||||
Net income | $ | 6,612 | |||||||||
Assets and costs are proportional to sales. The company maintains a constant 45 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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