Major Manuscripts, Inc.
2012 Income Statement

Net sales

$

7,800

Cost of goods sold

6,865

Depreciation

210

Earnings before interest and taxes

$

725

Interest paid

31

Taxable Income

$

694

Taxes

284

Net income

$

410

Dividends

$

187

Major Manuscripts, Inc.
2012 Balance Sheet

2012

2012

Cash

$

2,400

Accounts payable

$

1,550

Accounts rec.

880

Long-term debt

300

Inventory

2,700

Common stock

$

3,100

Total

$

5,980

Retained earnings

4,430

Net fixed assets

3,400

Total assets

$

9,380

Total liabilities & equity

$

9,380

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. In 2013, no new equity will be raised and sales are projected to increase by 10 percent. Construct the pro formas for 2013 and answer the following questions (show your work!).

Projected total assets= $______
Projected retained earnings= $______
Additional new debt required= $______