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The most recent financial statements for Throwing Copper Co. are shown here: Income Statement Balance Sheet Sales $45,000 Current assets $70,470 Long-term debt $48,600 Costs
The most recent financial statements for Throwing Copper Co. are shown here: |
Income Statement | Balance Sheet | ||||
Sales | $45,000 | Current assets | $70,470 | Long-term debt | $48,600 |
Costs | 28,800 | Fixed assets | 38,880 | Equity | 60,750 |
Taxable income | $16,200 | Total | $109,350 | Total | $109,350 |
Taxes (34%) | 5,508 | ||||
Net income | $10,692 | ||||
Assets and costs are proportional to sales. The company maintains a constant 22 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.) |
Multiple Choice
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$1,812.58
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$7,160.61
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$7,260.61
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$7,060.61
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$3,715.36
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