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The most recent financial statements for Mc Govney Co. are shown here: Income Statement Sales $45,065 Costs $38,780 Taxable Income ? Taxes (34%) ? Net
The most recent financial statements for Mc Govney Co. are shown here:
| Income Statement | |
| Sales | $45,065 |
| Costs | $38,780 |
| Taxable Income | ? |
| Taxes (34%) | ? |
| Net Income | ? |
| Balance Sheet | |||
| Current Asset | $24,921 | Long-term Debt | $49,665 |
| Fixed Asset | $86,322 | Equity | ? |
Assets and costs are proportional to sales. The company maintains a constant 15 percent dividend payout ratio and a constant debtequity ratio.
What is the maximum increase in sales (in $) that can be sustained assuming no new equity is issued?
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