Sales and Growth The most recent financial statements for Fontenot Co. are shown here:
Income Statement |
| Balance Sheet |
| ||
Sales | $67,000 | Current assets | $ 31,000 | Long-term debt | $ 68,000 |
Costs | 43,800 | Fixed assets | 118,000 | Equity | 81,000 |
Taxable income | $23,200 | Total | $149,000 | Total | $149,000 |
Taxes (34%) | 7,888 |
|
|
|
|
Net income | $15,312 |
|
|
|
|
Assets and costs are proportional to sales. The company maintains a constant 30 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?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.