Question
The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $55,000 Current assets $86,130 Long-term debt $59,400 Costs
The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $55,000 Current assets $86,130 Long-term debt $59,400 Costs 35,200 Fixed assets 47,520 Equity 74,250 Taxable income $19,800 Total $133,650 Total $133,650 Taxes (34%) 6,732 Net income $13,068 Assets and costs are proportional to sales. The company maintains a constant 26 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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