Problem $4-8$ Sales and Growth $[$LO$2]$

The most recent financial statements for Nguyen Company are shown here:

Income StatementBalance SheetSales$ $45,500$Current assets$ $18,940$Long$-$term debt$ $37,920$Costs$36,400$Fixed assets$69,200$Equity$50,220$Taxable income$ $9,100$Total$ $88,140$Total$ $88,140$Taxes $(23\%)2,093$Net income$ $7,007$

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 dollar increase in sales that can be sustained assuming no new equity is issued?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Problem $4-8$ Sales and Growth $[$LO$2]$

The most recent financial statements for Nguyen Company 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 dollar increase in sales that can be sustained assuming no new equity is issued?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Maximum dollar increase

its not $4140\mathrm{.}5$