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Problem $12-04($Self$-$Supporting Growth Rate$)$

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Self$-$Supporting Growth Rate

Maggie's Muffins Bakery generated $$4$ million in sales during $2019,$ and its year$-$end total assets were $$2\mathrm{.}2$ million. Also, at year$-$end $2019,$ current liabilities were $$1$ million, consisting of $$300,000$ of notes payable, $$500,000$ of accounts payable, and $$200,000$ of accruals. Looking ahead to $2020,$ 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 $3\%,$ and its payout ratio will be $40\%.$ 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. Enter your answer for sales increase in dollars. For example, an answer of $$2$ million should be entered as $2,000,000.$ Round the monetary value to the nearest dollar and percentage value to one decimal place.

Sales can increase by $ $,$ that is by $\%.$