Answer Choice Options:

$232

$137

$618

$249

$369

Major Manuscripts, Inc. 2012 Income Statement Net sales $ 8,600 Cost of goods sold 7,550 Depreciation 310 Earnings before interest and 740 taxes Interest paid 40 Taxable income 700 Taxes 280 Net income $ 420 Dividends | | 194 Cash Accounts rec. Inventory Total Net fixed assets Total assets Major Manuscripts, Inc. 2012 Balance Sheet 2012 $ 2,420 Accounts payable 960 Long-term debt 2,800 Common stock 6,180 Retained earnings 3,400 9,580 Total liabilities & Jequity 2012 $ 2,320 280 $ 2,400 4,580 || 9,580 Major Manuscripts, Inc., is currently operating at 70 percent of capacity. All costs and networking 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