Profit in 2016 = 4,000,000*4% = $160,000
Retained profit = 160,000*30% = $48,000
Increase in assets required for each dollar of sales = 0.75
Corresponding increase in current liabilities = 0.75*500,000/3,000,000 = 0.125
Increase in Capital = 0.625
Hence, increase that can be achieved = 48000/0.625 = $76,800
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