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The most recent financial statements for Live Co. are shown here: Income Statement Balance Sheet Sales $4,000 Current assets $4,252 Debt $8,501 Costs 2,640 Fixed

The most recent financial statements for Live Co. are shown here:

Income Statement Balance Sheet

Sales $4,000 Current assets $4,252 Debt $8,501

Costs

2,640

Fixed assets 10,409 Equity 6,160

Taxable income $1,360 Total

$14,661

Total

$14,661

Taxes (34%) 462

Net income

$898

Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 26 percent dividend payout ratio. No external equity financing is possible.

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