Question: Problem 03-A (10 points) The most recent financial statements for Wise Co. are shown here: Assets and costs are proportional to sales. The company maintains

Problem 03-A (10 points) The most recent financial statements for Wise Co. are shown here: 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? Income Statement Sales Costs Taxable income Taxes (34%) Net income $43,000 21,500 $21,500 7,310 $14,190 Current assets Fixed assets Total Balance Sheet $27,000 Long-term debt 118,000 Equity $145,000 Total $62,000 83,000 $145,000

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