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The most recent financial statements for Weyland Co. are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 68,900 Current assets $ 31,100 Long-term debt $
The most recent financial statements for Weyland Co. are shown here: |
INCOME STATEMENT | BALANCE SHEET | |||||||
Sales | $ | 68,900 | Current assets | $ | 31,100 | Long-term debt | $ | 69,200 |
Costs | 43,300 | Fixed assets | 118,900 | Equity | 80,800 | |||
Taxable income | $ | 25,600 | Total | $ | 150,000 | Total | $ | 150,000 |
Taxes (34%) | 8,704 | |||||||
Net income | $ | 16,896 | ||||||
Assets and costs are proportional to sales. The company maintains a constant 28 percent dividend payout ratio and a constant debt-equity ratio. |
Required: |
What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not include the dollar sign ($). Round your answer to 2 decimal places. (e.g., 32.16)) |
Maximum increase in sales | $ |
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