Major Manuscripts, Inc. 2012 Income Statement Net sales $17,100 Cost of goods sold 11,200 Depreciation 1.650...

   

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Major Manuscripts, Inc. 2012 Income Statement Net sales $17,100 Cost of goods sold 11,200 Depreciation 1.650 Earnings before interest and taxes 4.250 Interest paid 350 Taxable income $3,900 Taxes Net income 1.300 $2.600 Dividends $950 Major Manuscripts, Inc. 2012 Balance Sheet 2012 2012 Cash $1,040 Accounts payable $3.350 Accounts rec. 700 Long-term debt 2,780 Inventory 7.500 Common stock 10,000 Total 9,240 Retained earnings 4.510 Net fixed assets 11.400 Total assets $20,640 Total liabilities & equity $20.640 Assume that Major Manuscripts, Inc. is currently operating at 97 percent of capacity and that sales are projected to increase to $20,000. What is the projected addition to fixed assets? Major Manuscripts, Inc. 2012 Income Statement Net sales $17,100 Cost of goods sold 11,200 Depreciation 1.650 Earnings before interest and taxes 4.250 Interest paid 350 Taxable income $3,900 Taxes Net income 1.300 $2.600 Dividends $950 Major Manuscripts, Inc. 2012 Balance Sheet 2012 2012 Cash $1,040 Accounts payable $3.350 Accounts rec. 700 Long-term debt 2,780 Inventory 7.500 Common stock 10,000 Total 9,240 Retained earnings 4.510 Net fixed assets 11.400 Total assets $20,640 Total liabilities & equity $20.640 Assume that Major Manuscripts, Inc. is currently operating at 97 percent of capacity and that sales are projected to increase to $20,000. What is the projected addition to fixed assets?