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The most recent financial statements for Zoom Co. are shown here: Income Statement Balance Sheet Sales $45,000 Current assets $70,470 Long-term debt $48,600 Costs 28,800

The most recent financial statements for Zoom Co. are shown here:

Income Statement Balance Sheet
Sales $45,000 Current assets $70,470 Long-term debt $48,600
Costs

28,800

Fixed assets 38,880 Equity 60,750
Taxable income $16,200 Total

$109,350

Total

$109,350

Taxes (33%) 5,346
Net income

$10,854

Assets and costs are proportional to sales. The company maintains a constant 34 percent dividend payout ratio and a constant debtequity ratio.

Required:

What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round your intermediate calculations.)

Multiple Choice

$6,015.78

$6,115.78

$5,915.78

$2,910.4

$3,154.67

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