Major Manuscripts, Inc. 2012 Income Statement
Net sales	$	7,900
Cost of goods sold		6,900
Depreciation		240
Earnings before interest and taxes	$	760
Interest paid		71
Taxable Income	$	689
Taxes		245
Net income	$	444
Dividends	$	180

Major Manuscripts, Inc. 2012 Balance Sheet
	2012				2012
Cash	$	2,350		Accounts payable	$	1,730
Accounts rec.		890		Long-term debt		380
Inventory		2,450		Common stock	$	2,400
Total	$	5,690		Retained earnings		4,510
Net fixed assets		3,330
Total assets	$	9,020		Total liabilities & equity	$	9,020

Major Manuscripts, Inc., is currently operating at 90 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?