Major Manuscripts, Inc., is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate 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?

$129

$389

$620

$649

$70

Net sales Cost of goods sold Depreciation Earnings before interest and taxes Interest paid Taxable Income Taxes Net income Dividends Major Manuscripts, Inc. 2012 Income Statement $ I $ I S I Sll $ $ 9,100 7,515 340 1,245 30 1,215 461 754 190 Cash Accounts rec. Inventory Total Net fixed assets Total assets S I S T Major Manuscripts, Inc. 2012 Balance Sheet 2012 3,700 1,010 4,000 8,710 4,700 13,410 Accounts payable Long-term debt Common stock Retained earnings Total liabilities & equity S S 2012 3,320 260 4,100 5,730 13,410