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

Assets and costs are proportional to sales. The company maintains a constant 30 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?

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Income Statement Balance Sheet Sales Costs Taxable income Taxes (34%) $54,000 Current assets 31,000 Long-term debt 68,000 81,000 $149,000 118,000 Equity $149,000 Total 39,300 Fixed assets $14,700 Total 4,998 Net income $ 9,702