Major Manuscripts, Inc 2009 Income Statement Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable income Taxes Net income Dividends $950 $16.800 11,200 1.650 3.950 350 $3,600 1.224 $2.376 Major Manuscripts, Inc. 2009 Balance Sheet Cash Accounts rec. Inventory Total Net fixed assets Total assets 2009 $1.040 650 7.500 $9,190 11.400 $20.590 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity 2009 $3,300 2,780 10,000 4,510 $20.590 (1) Major Manuscripts, Inc. is currently operating at full capacity. All costs and net working capital 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 20 percent? (2) Major Manuscripts, Inc. is currently operating at 80 percent of capacity. All costs and net working capital 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 20 percent? (1) Major Manuscripts, Inc. is currently operating at 80 percent of capacity. All costs and net working capital 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 50 percent