Excel Online Structured Activity: Sales Increase

Maggie's Muffins, Inc., generated $$2,000,000$ in sales during $2015,$ and its year$-$end total assets were $$1,600,000.$ Also, at year$-$end $2015,$ current

liabilities were $$1,000,000,$ consisting of $$300,000$ of notes payable, $$500,000$ of accounts payable, and $$200,000$ of accruals. Looking ahead to $2016,$ the

company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit

margin will be $6\%,$ and its payout ratio will be $40\%.$

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

Open spreadsheet

How large a sales increase can the company achieve without having to raise funds externally; that is$,$ what is its self$-$supporting growth rate? Do not round

intermediate calculations. Round your answers to the nearest whole number.

Sales can increase by $

that is by

$\%.$