The most recent financial statements for Beckett Co. are shown here: INCOME STATEMENT BALANCE SHEET Sales $ 78,500 Current assets $ 23,500 Long-term debt $ 59,000 Costs 63,400 Fixed assets 153,000 Equity 117,500 Taxable income $ 15,100 Total $ 176,500 Total $ 176,500 Taxes (22%) 3,322 Net income $ 11,778 Assets and costs are proportional to sales. The company maintains a constant 35 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.).

1. The most recent financial statements for Beckett Co. are shown here: INCOME
STATEMENT BALANCE SHEET Sales $ 78,500 Current assets $ 23,500 Long-term
debt $ 59,000 Costs 63,400 Fixed assets 153,000 Equity 117,500
Taxable income $ 15,100 Total $ 176,500 Total $ 176,500 Taxes (22%) 3,322
Net income $ 11,778 Assets and costs
are proportional to sales. The company maintains a constant 35 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? (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)