: Lean is a successful businessman who recently found himself in a difficult situation. He has been presented with an opportunity to make a large profit, but in order to do so, he must exploit his employees and cut their wages. Lean is torn between wanting to do what is right and knowing that he will make a lot of money if he takes the opportunity. Lean is an ethical egoist, meaning he believes that he should do what is.

1. Maggie's Muffins Bakery generated $6 million in sales during 2019, and its yearend total assets
were $3 million. Also, at year-end 2019 , current liabilities were $1 million, consisting of
$300,000 of notes payable, $500,000 of accounts payable, and $200,000 of accruals. Looking
ahead to 2020 , the company estimates that its assets must increase at the same rate as sales, its
spontaneous liabilities will increase at the same rate as sales, its profit margin will be 5%, and its
payout ratio will be 65%. How large a sales increase can the company achieve without having to
raise funds externally-that is, what is its self-supporting growth rate? Do not round intermediate
calculations. Enter your answer for sales increase in dollars. For example, an answer of $2
million should be entered as 2,000,000. Round the monetary value to the nearest dollar and
percentage value to one decimal place. Sales can increase by $ that is by %