Problem 12-04 Sales Increase Maggie's Muffins Bakery generated $4,000,000 in sales during 2016, and its year-end...

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Problem 12-04 Sales Increase Maggie's Muffins Bakery generated$4,000,000 in sales during 2016, and its year-end total assets were$3,000,000. Also, at year-end 2016, current liabilities were$1,000,000, consisting of $300,000 of notes payable, $500,000 ofaccounts payable, and $200,000 of accruals. Looking ahead to 2017,the company estimates that its assets must increase at the samerate as sales, its spontaneous liabilities will increase at thesame rate as sales, its profit margin will be 3%, and its payoutratio will be 50%. How large a sales increase can the companyachieve without having to raise funds externally—that is, what isits self-supporting growth rate? Do not round intermediatecalculations. Round your answers to the nearest whole.

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Calculation of Selfsupporting Growth Rate Current Year Sales 4000000 Profit Margin 300 Retention Ratio 50 100 50 Total Spontaneous Liabilities 700000 See Answer

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Problem 12-04 Sales Increase Maggie's Muffins Bakery generated$4,000,000 in sales during 2016, and its year-end total assets were$3,000,000. Also, at year-end 2016, current liabilities were$1,000,000, consisting of $300,000 of notes payable, $500,000 ofaccounts payable, and $200,000 of accruals. Looking ahead to 2017,the company estimates that its assets must increase at the samerate as sales, its spontaneous liabilities will increase at thesame rate as sales, its profit margin will be 3%, and its payoutratio will be 50%. How large a sales increase can the companyachieve without having to raise funds externally—that is, what isits self-supporting growth rate? Do not round intermediatecalculations. Round your answers to the nearest whole.