What is the maximum increase in sales

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Reference no: EM131346213

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

Income statement Balance Sheet

Sales $50000 current assets $78300 Long-term debt $54000

Costs 32000 Fixed assets 43200 Equity 67500

Taxable Income 18000 total $121500 Total $121500

Taxes(33%) 5940

Net Income $12060

Assets and costs are proportional to sales. The company maintains a constant 32 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 round your intermediate calculations.)

Reference no: EM131346213

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