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 8 percent?

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Projected total assets = $20,590 F1F1F1S1F1F1F10 1.08 = $22,237Projected accounts payable = $3,300 F1F1F1S1F1F1F10 1.08 = $3,564Current long-term debt = $2,780Current common stock = $10,000Projected retained earnings = $4,510 + [($2,376 - $950) F1F1F1S1F1F1F10 1.08] = $6,050Additional debt required = $22,237 - $3,564 - $2,780 - $10,000 - $6,050 = -$157