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The most recent financial statements for Alexander Company are shown here: Income Statement Sales $ 40,000 Costs 25,600 Taxable income $ 14,400 Taxes (22%) 3,168

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The most recent financial statements for Alexander Company are shown here: Income Statement Sales $ 40,000 Costs 25,600 Taxable income $ 14,400 Taxes (22%) 3,168 Net income $ 11,232 Balance Sheet Current assets $ 62,640 Long-term debt $ 43,200 Fixed assets 34,560 Equity 54,000 Total $ 97,200 Total $ 97,200 24 Assets and costs are proportional to sales. The company maintains a constant 30 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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