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The most recent financial statements for Weyland Co. are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 50,200 Current assets $ 24,600 Long-term debt $
The most recent financial statements for Weyland Co. are shown here: |
INCOME STATEMENT | BALANCE SHEET | ||||||||||
Sales | $ | 50,200 | Current assets | $ | 24,600 | Long-term debt | $ | 41,000 | |||
Costs | 38,100 | Fixed assets | 92,000 | Equity | 75,600 | ||||||
Taxable income | $ | 12,100 | Total | $ | 116,600 | Total | $ | 116,600 | |||
Taxes (34%) | 4,114 | ||||||||||
Net income | $ | 7,986 | |||||||||
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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