Income Statement Sales Costs Taxable income Taxes (24%) Net income $44,900 36,200 $8,700 2,088 $6,612 Current assets Fixed assets Total pany are sh Balance Sheet $18,620 Long-term debt 69,000 Equity $ 87,620 Total $37,720 49,900 $ 87,620 Assets and costs are proportional to sales. The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar 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., 3216)

Income Statement Sales Costs Taxable income Taxes (24%) Net income $44,900 36,200 $8,700 2,088 $6,612 Current assets Fixed assets Total pany are sh Balance Sheet $18,620 Long-term debt 69,000 Equity $ 87,620 Total $37,720 49,900 $ 87,620 Assets and costs are proportional to sales. The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar 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., 3216)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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