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? Multiple Choice $106 $279 $290 $173 $569