Oscar's Incredible Eatery $($$ thousands$)$

Income Statement for the year ending December $31,2021$

Net sales $17,300$

Cost of goods sold $10,600$

Depreciation $3,250$

Earnings before interest and taxes $3,450$

Interest expense $680$

Earnings before tax $2,770$

Tax $940$

Earnings after tax $1,830$

Dividends $450$

Oscar's Incredible Eatery $($$ thousands$)$

Balance Sheet as of December $31,2021$

Cash $350$ Accounts payable $1,920$

Accounts receivable $940$ Long$-$term debt $3,500$

Inventory $2,360$ Common stock $7,500$

Total current assets $3,650$ Retained earnings $1,580$

Net fixed assets $10,850$

Total assets $14,500$ Total liability & equity $14,500$

Please refer to Oscar$$s financial statements above. Assume a constant debt$-$equity ratio, net profit margin, and dividend payout ratio, and further assume all of Oscar$$s expenses, assets, and current liabilities vary directly with sales. What is the pro forma net fixed asset value for next year if sales are projected to increase by $7\mathrm{.}5\%?$

Multiple Choice

$$10,857\mathrm{.}50$

$$10,931\mathrm{.}38$

$$11,663\mathrm{.}75$

$$15,587\mathrm{.}50$

$$18,987\mathrm{.}50$

None of the options$$are$$correct$.$