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The most recent financial statements for Weyland Co. are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 38,600 Current assets $ 23,000 Long-term debt $
The most recent financial statements for Weyland Co. are shown here: |
INCOME STATEMENT | BALANCE SHEET | ||||||||||
Sales | $ | 38,600 | Current assets | $ | 23,000 | Long-term debt | $ | 40,000 | |||
Costs | 29,300 | Fixed assets | 78,000 | Equity | 61,000 | ||||||
Taxable income | $ | 9,300 | Total | $ | 101,000 | Total | $ | 101,000 | |||
Taxes (34%) | 3,162 | ||||||||||
Net income | $ | 6,138 | |||||||||
Assets and costs are proportional to sales. The company maintains a constant 25 percent dividend payout ratio and a constant debt-equity ratio. |
What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) |
Maximum increase in sales | $ |
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