Jackson Co. has the following balance sheet as of December 31, 2001.

Assets:Current assets $600,000; Fixes assets 400,000; Total assets $1,000,000;

Claims:

Accounts payable $100,000; Accruals 100,000; Notes payable 100,000;

Long-term debt 300,000

Total common equity 400,000

Total claims $1,000,000

In 2001, the company reported sales of $5 million, net income of $100,000, and dividends of $60,000.The company anticipates its sales will increase 20 percent in 2002 and its dividend payout will remain at 60 percent.Assume the company is at full capacity, so its assets and spontaneous liabilities will increase proportionately with the increase in sales.

Assume the company uses the AFN formula and all additional funds needed (AFN) will come from issuing new long term debt.Given its forecast, how much long-term debt will the company have to issue in 2002?