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The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $60,000 Current assets $93,960 Long-term debt $64,800 Costs
The most recent financial statements for Throwing Copper Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $60,000 | Current assets | $93,960 | Long-term debt | $64,800 |
Costs | 38,400 | Fixed assets | 51,840 | Equity | 81,000 |
Taxable income | $21,600 | Total | $145,800 | Total | $145,800 |
Taxes (34%) | 7,344 | ||||
Net income | $14,256 | ||||
Assets and costs are proportional to sales. The company maintains a constant 28 percent dividend payout ratio and a constant debtequity 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.) |
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