How to increase my sales?

How much additional debt is required if no new equity is raised and sales are projected to increase by 10 perc?

• Major Manuscripts, Inc. 2009 Income Statement Net sales $7,600 Cost of goods sold 6,615 Depreciation 210 Earnings before interest and taxes $ 775 Interest paid 22 Taxable Income $ 752 Taxes 262 Net income $ 490 Dividends $ 221 Major Manuscripts, Inc. 2009 Balance Sheet 2009 2009 Cash $2,250 Accounts payable $1,650 Accounts rec. 850 Long-term debt 300 Inventory 2,500 Common stock $2,500 Total $5,600 Retained earnings 4,150 Net fixed assets 3,000 Total assets $8,600 Total liabilities & equity $8,600 Major Manuscripts, Inc. is currently operating at maximum capacity. All costs, assets, and current liabilities vary directly with sales. The tax rate and the dividend payout ratio will remain constant. How much additional debt is required if no new equity is raised and sales are projected to increase by 10 percent? I am so lost I dont even know where to begin!

• Answer:

  Please post a new question cos it has been more than 1 day u asked this question without a reply.