The most recent financial statements for Throwing Copper Co. are shown here:
Income statement Balance Sheet
Sales $50000 current assets $78300 Long-term debt $54000
Costs 32000 Fixed assets 43200 Equity 67500
Taxable Income 18000 total $121500 Total $121500
Taxes(33%) 5940
Net Income $12060
Assets and costs are proportional to sales. The company maintains a constant 32 percent dividend payout ratio and a constant debt−equity ratio.
Required:
What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round your intermediate calculations.)