Self-supporting growth rate = [PM * Retention Ratio * Sales0] / [A0 - L0 - {PM * Retention Ratio * Sales0}]
= [0.05 * 0.35 * $2,000,000] / [$1,700,000 - ($200,000 + $100,000) - {0.05 * 0.35 * $2,000,000}]
= $35,000 / $1,365,000 = 0.02564, or 2.564%
Sales Increase = S0 * Self-supporting growth rate
= $2,000,000 * 0.02564 = $51,282.05
Paladin Furnishings generated $2 million in sales during 2016, and its year-end total assets were $1.7...
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