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The most recent financial statements for Weyland Co. are shown here INCOME STATEMENT BALANCE SHEET Sales $50,000Current assets$24,000Long-term debt $54,500 Costs 38,000 Fixed assets 91,000
The most recent financial statements for Weyland Co. are shown here
INCOME STATEMENT BALANCE SHEET
Sales $50,000Current assets$24,000Long-term debt $54,500
Costs38,000Fixed assets91,000Equity 60,500
Taxable income $12,000Total $115,000Total $115,000
Taxes (34%)4,080
Net income $ 7,920
Assets and costs are proportional to sales.The company maintains a constant 40 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?
Maximum increase in sales$
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