The most recent financial statements for Mc Govney Co. are shown here:
Income Statement Balance Sheet
Sales $ 52,400 Current assets $ 22,600 Long-term debt $ 52,000
Costs 42,200 Fixed assets 92,000 Equity 62,600
Taxable income $ 10,200 Total $ 114,600 Total $ 114,600
Taxes (34%) 3,468
Net income $ 6,732
What is the maximum increase in sales that can be sustained assuming no new equity is issued? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Maximum increase in sales $
Suppose the increase rate is r. (unit: %)
Now, projected net income=6732(1+r) and projected asset=114600(1+r).
So projected ...
The soluton gives detailed steps on finding the maximum increase in sales that can be sustained assuming no new equity is issued。All formula and calculations are shown and explained.