For 2012, the balance sheet of Larsen Lithographics reported current assets of $9,190, net fixed assets of $11,400, current liabilities of $3,300, long-term debt of $2,780, common stock of $10,000 and retained earnings of $4,510. The income statement reported net sales of $16,800, EBIT of $3,950, taxable income of $3,600 and net income of $2,376. The firm paid $950 in dividends. Larsen is currently operating at maximum capacity and all costs, assets and current liabilities are presumed to vary directly with sales. The tax rate and dividend payout ratio are expected to remain constant. Larsen has grown rapidly and expects to continue to do so. How much additional debt is required if no new equity is issued and sales are projected to increase by 15 percent next year? -$157 $486 $692 $954 $1,101