He most recent financial statements for Hailey Co. are shown here: Income Statement Balance Sheet
Sales $ 66,000 Current assets $30,000 Long-term debt $64,500
Costs 25,600 Fixed assets 125,000 Equity 90,500
Taxable income $40,400 Total $155,000 Total $155,000
Taxes (25%) 10,100
Net income $30,300

Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant debt-equity ratio.

Requried:
What is the maximum increase in sales that can be sustained assuming no new equity is issued?

$10,464.41

Explanation:

in order to answer this question we can use the external financing needs formula, except that we will have EFn = 0, and look for Δ Sales

EFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))

0 = 2.3485Δ - 0 - (0.4591 x FS x 0.7)

0 = 2.3485Δ - (0.3214 x FS)

0 = 2.3485Δ - [0.3214 x ($66,000 + Δ)]

0 = 2.3485Δ - $21,212.40 + 0.3214Δ

$21,212.40 = 2.0271Δ

Δ = $21,212.40 / 2.0271 = $10,464.41

If no new equity is raised, sales can increase by $10,464.41. Total forecasted sales = $76,464.41

there's 11 people for the 1st position. then, no matter who gets it, there's only 10 left for the second, and then 9 left for the third. 11 x 10 x 9 = 990.   the answer is there are 990 different ways the positions can be filled by these applicants