Question: Chapter 3-05: The most recent financial statements for Wise Co. are shown here: Income Statement Sales 50,000 Current assets $ Costs 38,000 Fixed assets Taxable

Chapter 3-05: The most recent financial statements for Wise Co. are shown here: Income Statement Sales 50,000 Current assets $ Costs 38,000 Fixed assets Taxable income $ 12,000 Total $ Taxes (34%) 4,080 Net income $ 7.920 54,500 60,500 Balance Sheet 24,000 Long-term debt $ 91,000 Equity 115,000 Total 115,000 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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