The following balance sheet and income statement should be used: 
Assume that Taylor, Inc. is operating at full capacity. Also assume that all costs, net working capital, and fixed assets vary directly with sales. The debt-equity ratio and the dividend payout ratio are
Constant. What is the projected increase in total assets if sales are projected to increase by 25%?
Definitions:
After-tax Real Interest Rate
The interest rate received by lenders or paid by borrowers, adjusted for inflation and taxes, that reflects the true cost of borrowing or real yield on savings.
Inflation Rate
The speed at which the overall price level of goods and services increases, diminishing the buying power progressively.
Deflation
A decrease in the general price level of goods and services, often indicating a contraction in the supply of money and credit in an economy.
Crop Prices
The selling price of agricultural products, which can fluctuate based on factors like supply, demand, weather conditions, and government policies.
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