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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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