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The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $42,000 Current assets $21,000 Long-term debt $51,000 Costs

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

Income Statement

Balance Sheet

Sales

$42,000

Current assets

$21,000

Long-term debt

$51,000

Costs

28,500

Fixed assets

86,000

Equity

56,000

Taxable income

$13,500

Total

$107,000

Total

$107,000

Taxes (34%)

4,590

Net income

$8,910


Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debt?equity ratio.

Required:

What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round your intermediate calculations.)

$2,599.70 is that correct?

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