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

Assets and costs are proportional to sales. The company maintains a constant 40 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?

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Balance Sheet Income statement $42,800 Current assets 35,500 Fixed assets Total $17,500 Long-term debt Sales $37,000 68,300 Equity Total $85,800 Costs Taxable income Taxes (23%) Net income 48,800 $ 7,300 1,679 $85,800 $ 5,621