23. The following balance sheet and income statement should be used for the next 3 question KNF, Inc. 20x5 Income Statement Net sales Less: Cost of goods sold Less: Depreciation EBIT Less: Interest paid Taxable income Less Taxes Net income Dividends Addition to RE $10,300 7.400 1,500 1,400 340 1,060 371 689 310.05 378.95 KNF, Inc. 20X5 Balance Sheet 20x5 Cash 5 840 Accounts rec: 750 Inventory 930 Total 2,520 Net fixed assets 12.360 Total assets $14,880 20X5 Accounts payable Long-term debt Common stock Retained earnings $ 1.010 4,800 5,300 3.770 Total liabilities & equity $14,880 All costs and net working capital vary directly with sales Sales are projected to increase by 7 percent. What is the projected increase in accounts payable? a $7.50 b. $15.00 c. $70.70 d. 577.70 A. a. 57.50 OB. b. $15.00 C. c. 570.70 D. d. 577.70