Major Manuscripts, Inc.
2012 Income Statement |
| Net sales |
$ |
7,800 |
| Cost of goods sold |
|
6,850 |
| Depreciation |
|
230
|
| Earnings before interest and taxes |
$ |
720 |
| Interest paid |
|
65
|
| Taxable Income |
$ |
655 |
| Taxes |
|
240
|
| Net income |
$
|
415
|
| Dividends |
$ |
198 |
|
Major Manuscripts, Inc.
2012 Balance Sheet
|
|
2012 |
|
|
2012 |
| Cash |
$ |
2,340 |
|
Accounts payable |
$ |
1,840 |
| Accounts rec. |
|
880 |
|
Long-term debt |
|
370 |
| Inventory |
|
2,400
|
|
Common stock |
$ |
2,500 |
| Total |
$ |
5,620 |
|
Retained earnings |
|
4,130
|
| Net fixed assets |
|
3,220
|
|
|
|
|
| Total assets |
$
|
8,840
|
|
Total liabilities & equity |
$
|
8,840
|
Assume that Major Manuscripts, Inc., is currently operating at 80 percent of capacity and that sales are projected to increase to $10,200. What is the projected addition to fixed assets?
$599
$149
$259
$408
$450