Major Manuscripts, Inc. 2012 Income Statement
Net sales	$	8,800
Cost of goods sold		7,700
Depreciation		330
Earnings before interest and taxes	$	770
Interest paid		50
Taxable Income	$	720
Taxes		290
Net income	$	430
Dividends	$	198

Major Manuscripts, Inc. 2012 Balance Sheet
	2012				2012
Cash	$	2,440		Accounts payable	$	2,510
Accounts rec.		980		Long-term debt		230
Inventory		2,900		Common stock	$	2,400
Total	$	6,320		Retained earnings		4,600
Net fixed assets		3,420
Total assets	$	9,740		Total liabilities & equity	$	9,740

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?