2012 Income Statement Net sales $ 7,600 Cost of goods sold 6,650 Depreciation 210 Earnings before interest and taxes $ 740 Interest paid 55 Taxable Income $ 685 Taxes 230 Net income $ 455 Dividends $ 194 Major Manuscripts, Inc. 2012 Balance Sheet 2012 2012 Cash $ 2,320 Accounts payable $ 1,720 Accounts rec. 860 Long-term debt 350 Inventory 2,300 Common stock $ 2,500 Total $ 5,480 Retained earnings 4,110 Net fixed assets 3,200 Total assets $ 8,680 Total liabilities & equity $ 8,680 Assume that Major Manuscripts, Inc., is currently operating at 80 percent of capacity and that sales are projected to increase to $10,000. What is the projected addition to fixed assets? $500 $288 $168 $457 $668 References