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Major Manuscripts, Inc 2012 Income Statement Net sales $17.100 11.200 1.650 Cost of goods sold Depreciation Earnings before interest and taxes Interest paid 4,250 350
Major Manuscripts, Inc 2012 Income Statement Net sales $17.100 11.200 1.650 Cost of goods sold Depreciation Earnings before interest and taxes Interest paid 4,250 350 Taxable income $3.900 Tases 1.200 Net income $2.600 Dividends $950 Major Manuscripts, Inu. 2012 Balance Sheet 2012 2012 Cash $1.040 $3,350 Accounts ree 700 2.780 Accounts payable Long-term debt Common stock Retained earnings Inventory 745.00 10.000 4310 Total 9.240 1400 Net fixed assets Total assets $20.640 Total liabilities & equity $20.6.40 Assume that Major Manuscripts, Inc. is currently operating at 97 percent of capacity and that sales are projected to increase to $20,000. What is the projected addition to fixed assets? A. $0 B. $1,533 C. $1,629 D. $1,646 E. $1,688
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