Major Manuscripts, Inc. 2012 Income Statement
Net sales	$	7,800
Cost of goods sold		6,850
Depreciation		230
Earnings before interest and taxes	$	720
Interest paid		66
Taxable Income	$	654
Taxes		240
Net income	$	414
Dividends	$	195

Major Manuscripts, Inc. 2012 Balance Sheet
	2012				2012
Cash	$	2,340		Accounts payable	$	1,670
Accounts rec.		880		Long-term debt		370
Inventory		2,400		Common stock	$	2,400
Total	$	5,620		Retained earnings		4,500
Net fixed assets		3,320
Total assets	$	8,940		Total liabilities & equity	$	8,940

Major Manuscripts, Inc., is currently operating at 80 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?