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The most recent financial statements for Wise Co. are shown here: Income Statement Balance Sheet Sales $ 38,200 Current assets $ 21,800 Long-term debt $
The most recent financial statements for Wise Co. are shown here: |
Income Statement | Balance Sheet | ||||||||||
Sales | $ | 38,200 | Current assets | $ | 21,800 | Long-term debt | $ | 51,500 | |||
Costs | 29,100 | Fixed assets | 76,000 | Equity | 46,300 | ||||||
Taxable income | $ | 9,100 | Total | $ | 97,800 | Total | $ | 97,800 | |||
Taxes (34%) | 3,094 | ||||||||||
Net income | $ | 6,006 | |||||||||
Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debtequity 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 answer to 2 decimal places, e.g., 32.16.) |
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