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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