2012 Income Statement Net sales 8100 7015 Cost of goods sold 240 Depreciation Earnings before interest and taxes 845 46 Interest paid 799 Taxable income 320 Taxes 479 Net income 193 Dividends Major Manuscripts, Inc. 2012 Balance Sheet 2012 2012 Cash 2,700 Accounts payable S 1850 Accounts rec. 910 Long-term debt 330 Inventory 3,000 3,400 Common stock Total 6,610 4730 Retained earnings Net fixed assets 3,700 Total liabilities & equity S 10310 10,310 Major Manuscripts, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 10 percent? O $137 O $531 O $861 O $315 O $201