Use the following information to answer the following question. Statement of income For the year Sales $28,400 cost of goods sold 21,200 Depreciation 2,700 Earnings before interest and taxes $ 4,500 interested payment 850 taxable income $ 3,650 Taxes 1,400

Use the following information to answer the following question.

Statement of income
For the year
Sales	$28,400
cost of goods sold	21,200
Depreciation	2,700
Earnings before interest and taxes	$ 4,500
interested payment	850
taxable income	$ 3,650
Taxes	1,400
Net Income	$ 2,250
Dividends $900

Balance sheet
End of the year
Money	$ 550
accounts receivable	2,450
Inventory	4,700
Total current assets	$ 7,700
net fixed assets	16,900
total assets	$24,600
Accounts payable	$ 2,700
long term debt	9,800
Common Stock ($1 par value)	8,000
Retained earnings	4,100
Full Responsibility & Equity	$24,600

Assume that this business is currently operating at 98 percent capacity and that sales are projected to increase to $35,000. 

What is the projected addition to fixed assets?

• Expert Answer

To determine the projected addition to fixed assets we need to calculate the increase in net fix View the full answer