How large of a sales increase can the company achieve

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Paladin Furnishings generated exist2 million in sales during 2016, and its end total assets were exist1.2 million. Also, at year-end 2016, current liabilities were exist500,000, consisting of exist200,000 of notes payable, exist200,000 of accounts payable, and exist100,000 of accrued liabilities. Looking ahead to 2017, the company estimates that its assets must increase by exist0.60 for every exist1.00 increase in sales. Paladin's profit margin is 7%, and its retention ratio is 60%. How large of a sales increase can the company achieve without having to raise funds externally? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Do not round intermediate calculations. Round your answer to the nearest cent. exist _____________.

Reference no: EM131575590

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