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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

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

65

Taxable Income $ 655
Taxes

240

Net income

$

415

Dividends $ 198

Major Manuscripts, Inc. 2012 Balance Sheet

2012 2012
Cash $ 2,340 Accounts payable $ 1,840
Accounts rec. 880 Long-term debt 370
Inventory

2,400

Common stock $ 2,500
Total $ 5,620 Retained earnings

4,130

Net fixed assets

3,220

Total assets

$

8,840

Total liabilities & equity

$

8,840

Assume that Major Manuscripts, Inc., is currently operating at 80 percent of capacity and that sales are projected to increase to $10,200. What is the projected addition to fixed assets?

$599

$149

$259

$408

$450

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