Major Manuscripts, Inc 2009 Income Statement Net sales 7600 Cost of goods sold 6,815 Depreciation Earrings before interest and 585 taxes Interest paid 12 Taxable income 566 Taxes 197 Net income 369 Dividends 166 Accounts tec Inventory Total Netflixed assets Tots els Major Manuscripts, Inc. 2009 Balance Sheet 2009 2.200 Accounts payable 840 Long term debt 2200 Common stock 5240 Retsined coming 3120 8370 Totallables & equity 2009 1700 250 2500 3.920 8.270 Major Manuscripts, Inc. n cuently operating at maximum capacity All costs assets and current habitles Vaty cirectly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equily raised and sales are projected to increase by 10 percent? HINT: Start by calculating the growth in assets. Now we need to figure out how we will pay for the growth. Start by subtracting off from that needed amount of new assets the estimated growth in Internel equity (that it, the new retained earnings that will be used to purchase some of those new sets). Since current flabilities also grow proportional to see in this problem, ale subtract off the estimated growth in current liabilities fused to finance the purchase of current set). Whatever amount in left over is what we must role in new, long-term debt