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The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $50,000 Current assets $78,300 Long-term debt $54,000 Costs
The most recent financial statements for Throwing Copper Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $50,000 | Current assets | $78,300 | Long-term debt | $54,000 |
Costs | 32,000 | Fixed assets | 43,200 | Equity | 67,500 |
Taxable income | $18,000 | Total | $121,500 | Total | $121,500 |
Taxes (34%) | 6,120 | ||||
Net income | $11,880 | ||||
Assets and costs are proportional to sales. The company maintains a constant 20 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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