Major Manuscripts, Inc. 2012 Income Statement
Net sales	$	7,400
Cost of goods sold		6,550
Depreciation		190
Earnings before interest and taxes	$	660
Interest paid		46
Taxable Income	$	614
Taxes		220
Net income	$	394
Dividends	$	187

Major Manuscripts, Inc. 2012 Balance Sheet
	2012				2012
Cash	$	2,300		Accounts payable	$	1,430
Accounts rec.		840		Long-term debt		330
Inventory		2,200		Common stock	$	2,400
Total	$	5,340		Retained earnings		4,460
Net fixed assets		3,280
Total assets	$	8,620		Total liabilities & equity	$	8,620

Major Manuscripts, Inc., is currently operating at 70 percent of capacity. All costs and net working capital vary directly with sales. The tax rate, the profit margin, 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 10 percent?

A) 163

B) 534

C) 306

D) 228

E)143