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The most recent financial statements for McGovney Co. are shown here: Income Statement Sales $ 49,000 Costs 37,500 Current assets Fixed assets Balance Sheet $
The most recent financial statements for McGovney Co. are shown here: Income Statement Sales $ 49,000 Costs 37,500 Current assets Fixed assets Balance Sheet $ 21,000 Long-term debt $ 51,000 86,000 Equity 56,000 Taxable income $ 11,500 Total $ 107,000 Total $107,000 Taxes (34%) 3,910 Net income $ 7,590 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? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Maximum increase in sales
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