Major Manuscripts, Inc. 2009 income Statement Netsales 7.600 Cost of goods sold 6765 Depreciation 190 Earnings before interest and 645 Interest paid Taxable income Taxes Net Income Dividends 22 622 217 406 183 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2009 Cash 2.250 Accounts payable 1550 Accounts rec 880 Long-term debt 300 Inventory 2.200 Common stock 2,600 Total 5330 Retained earnings 4.050 Netfied assets 3.170 Total assets 8.500 Totalbes & equity 3.500 Major Manuscripts, Inc. is currently operating at mamum capacity. All costs, assets and currenties vary directly with wet. There and the dividend payout ratio will remain constant. How much additional debt is requvedino new equity is raised and sales are projected to increase by 10 percent INT. 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 Internal equity that it, the new retained earnings that will be used to purchase some of those new assets. Since current abilities also grow proportional to sales in this problem, also subtract off the estimated growth in current abilities used to finance the purchase of current assets). Whatever amount is leftover is what we mustrate in new, long term debit Multiple Choice 240 450 750 330 22