Question

The most recent financial statements for Weyland Co. are shown here: INCOME STATEMENT BALANCE SHEET Sales...

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

INCOME STATEMENT BALANCE SHEET
Sales $ 38,800 Current assets $ 23,600 Long-term debt $ 46,500
Costs 29,400 Fixed assets 79,000 Equity 56,100
Taxable income $ 9,400 Total $ 102,600 Total $ 102,600
Taxes (34%) 3,196
Net income $ 6,204


Assets and costs are proportional to sales. The company maintains a constant 20 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
  
Maximum increase in sales           $

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