The most recent financial statements for Alexander 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 Balance Sheet Sales Costs Taxable income Taxes (34%) $53,500 Current assets $19,000 Long-term debt $43,000 41,800 Fixed assets $11,700 72,000 Equity $91,000 Total 48,000 $91.000 Total 3,978 $ 7,722 Net income