Find the maximum dollar increase in sales

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Reference no: EM132070003

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

Income Statement			Balance Sheet
Sales	$	53,000	Current assets	$	24,400	Long-term debt	$	47,000
Costs		42,500	Fixed assets		95,000	Equity		72,400

Taxable income	$	10,500	Total	$	119,400	Total	$	119,400

Taxes (34%)		3,570

Net income	$	6,930

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 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., 32.16.)

Maximum increase in sales $

Reference no: EM132070003

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